2023
OUR
ORGANIZATION
GRIEG SEAFOOD FARMING
We farm Atlantic salmon (Salmo Salar) in Rogaland
and Finnmark in Norway, and in British Columbia and
Newfoundland in Canada. We have hatcheries, sea farms
and processing plants. Newfoundland is a greenfield project,
where we transferred our first fish to sea in 2022 and started
harvesting towards year end 2023.
GRIEG SEAFOOD SALES
We have our own integrated sales organization, with offices in
Norway, Canada and the USA.
BERGEN (HQ)
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
OUR VISION
ROOTED IN NATURE
FARMING THE OCEAN FOR A BETTER FUTURE
OUR VALUES
OPEN
We are open with each other. We share knowledge and ideas, and learn from each other.
We meet new perspectives with an open mind. We are always honest – also in difficult
situations. Our managers have an open door and welcome suggestions for ways to
improve.
We are open and transparent towards society. We proactively share honest information
about our operations with the public, the authorities, and the media – even before they
ask. We invite the community to our facilities, participate in the public debate, and engage
in dialogue with other users of the fjords.
AMBITIOUS
Every day, we endeavor to do our job in the best possible way. We never settle for the
average. We walk the extra mile. We always strive to improve. We think big and set
ambitious goals for everything we do. We are not afraid of making bold decisions, even if
they are tough and push us out of our comfort zone.
We embrace change and innovation. We prioritize our commitments and carry them out.
Our ambitious goals aim to make Grieg Seafood ever more profitable. Only then, we can
develop the salmon farming industry further.
CARING
We not only treat each other with respect, we care. We care about our people, and help
them flourish and develop their talents. We foster a caring environment – even in difficult
situations and when hard decisions must be made.
We care about our fish and the natural environment that is vital to the production of
healthy salmon. We work constantly to maintain good biological control and reduce
our impact on the environment. We will pass healthy fjords and salmon on to future
generations.
We care about our communities. We recognize that the fjords belong to them, and we
take their concerns seriously. We are a good neighbor. We create opportunities and
lasting value for society.
Harvested volume 2023
Harvested volume target
PART 01 - OUR FOUNDATION
For more information on the Group structure, refer to Note 1 in the Group Accounts.
2
OUR VALUE CHAIN
INPUT
NATURAL CAPITAL
• Public natural
resources: we lend sea
TECHNOLOGICAL
CAPITAL
• Farming equipment and
FINANCIAL CAPITAL
• Trust and investment
HUMAN CAPITAL
• People (experience,
from investors
ideas, passion)
areas for our sites and
technology
• Access to capital
• Culture
POLITICAL/SOCIAL
CAPITAL
• Our license to operate
• Trusted among our key
fresh water for our RAS
facilities.
• Privately owned natural
resources: Plant-
based and marine feed
ingredients, and salmon
eggs.
• Corporate governance
stakeholders
• Favorable political
conditions
OUR BRANDS
SKUNA BAY
Skuna Bay is our high-end HoReCa brand for the
US market. Skuna Bay fish is preferred by some of
America’s top chefs, and is regularly served at the
James Beard Award. Read more here.
BREEDING
FRESHWATER
FARMING
POST-SMOLT
SEAWATER
FARMING
HARVESTING
SALES AND
DISTRIBUTION
VALUE ADDED
PROCESSING
RETAIL / HORECA
OUTCOME
In Rogaland, we have a
In all of our regions, we
As part of our post-smolt
The salmon live and grow
We have harvesting plants
We have our own global
We have a small share
Our salmon is found in
broodstock operation
have land based RAS
strategy, we keep the
in the sea until they reach a
in Rogaland and Finnmark.
sales and market
of VAP in Norway and
retail stores or on the
where we breed for specific
freshwater facilities, where
salmon longer on land
harvestable size of 4–5 kg.
We use a harvesting vessel
organization with local
BC. We will form closer
menu at restaurants or
traits, such as strong
the eggs are hatched and
in all regions to shorten
in BC and perform primary
offices in the countries
partnerships in the market
hotels. Currently, we have
health or resistance to sea
the salmon spend at least
the time in seawater,
processing at a local plant.
we farm salmon and in
and establish our own VAP
the HoReCa brand Skuna
lice and diseases.
the first year.
reducing risk of biological
challenges. In Rogaland,
the average size of the
smolt transferred to the
sea in 2014 was 90 grams,
and we aim to increase this
to 1 kg in 2027.
PART 01 - OUR FOUNDATION
In Newfoundland, we have
selected markets, to
facility in Norway, and
Bay in Canada.
established cooperation with
support growth and the
increase the value of our
a local plant.
downstream strategy.
salmon through VAP.
1 200 000
HEALTHY MEALS
PER DAY*
*Based on our harvest volume in
2023, with 68% edible yield from live
weight, and servings of 125 grams.
3
OUR BUSINESS OPPORTUNITY
AQUACULTURE IN A
SUSTAINABLE GLOBAL
FOOD SYSTEM
Food systems are responsible for 70% of the water extracted from
nature, cause 60% of biodiversity loss, and generate up to a third of
human greenhouse gas emissions. A complete transformation of our
global food system is needed during the next decades. We must provide
healthy food for a growing population using fewer resources and with
a lower impact. If we do it right, food from the ocean can play an
important role.
THE CHALLENGES WE MUST SOLVE
• Ensuring co-existence with nature and other species
TOMORROW’S SUSTAINABLE
GLOBAL FOOD SYSTEM
• Improving fish welfare
• Finding sustainable feed ingredients
• Cutting carbon emissions
• Recycle resources
• Promoting human rights
• Healthy and nutritious food for nine billion people
• Nature and biodiversity protected
• Low carbon and low climate risk
• Good animal welfare
• A circular economy with resources recycled
• Social and economic justice for producers in
supply chains
Aquaculture has the potential to be an important part of the solution. 70% of the Earth is covered by ocean. Today, however, we obtain
only about 2% of our food from the sea. While there are limits to the amount of wild fish that can be sustainably harvested, sustainable
aquaculture can meet the increased demand for seafood in people’s diets. With a low carbon footprint, low feed conversion ratio, low
land and fresh water consumption, and a high edible yield, farmed salmon continues to be one of the most eco-efficient forms of animal
protein. In addition, farmed salmon is a nutritious food with numerous proven health benefits. Read more here.
PART 01 - OUR FOUNDATION
FARMED SALMON NUTRIENT PROFILE
FIGURE 1.1
FEED CONVERSION RATIO
Feed conversion ratio (FCR) measures the productivity of different protein production
methods. A lower FCR represents a more efficient use of feed resources.
• Omega 3 fatty acids
• Protein
• Vitamin D, B12 and A
• Iodine
• Selenium
• Minerals
Research shows that eating seafood at least twice a
week helps maintain a healthy heart and reduces the
risk of cardiovascular diseases. Regular consumption
of salmon can promote health and development across
the lifespan. Read more here.
FIGURE 1.2
EDIBLE YIELD, WATER CONSUMPTION AND CARBON FOOTPRINT
EDIBLE YIELD
Edible yield measures how much of
the animal is actually used for human
consumption. Farmed Atlantic salmon
has a high edible yield compared to other
animal proteins.
WATER CONSUMPTION
Farmed salmon has a low water
consumption compared to other
animal proteins.
CARBON FOOTPRINT
Farmed salmon has a low carbon footprint
compared to other animal proteins. Carbon
footprint measures the total greenhouse
gas emissions caused directly and indirectly
by production of an item. Carbon footprint
is measured as tonnes of carbon dioxide
equivalent per tonne of edible protein.
FARMED
ATLANTIC
SALMON
CHICKEN
PORK
LAMB
BEEF
68% 46% 52% 38%
N/A
2 000 4 300 6 000
N/A
15 400
0.60
0.88 1.30
N/A
5.92
Source: GSI
4
CONTENT
01
02
03
04
OUR FOUNDATION
OUR OPERATIONAL RESULTS
OUR FINANCIAL RESULTS
OUR INTEGRATED REPORTING
HIGHLIGHTS
KEY FINANCIAL FIGURES
OUR SUSTAINABILITY SCOREBOARD
CEO LETTER
OUR BUSINESS STRATEGY
OPERATIONAL FOCUS AREAS
SUSTAINABLE FOUNDATION
7
8
9
10
11
13
16
PROFITABLE OPERATIONS
EU TAXONOMY
GRIEG SEAFOOD ROGALAND
GRIEG SEAFOOD FINNMARK
GRIEG SEAFOOD BRITISH COLUMBIA
GRIEG SEAFOOD NEWFOUNDLAND
OUR CERTIFICATIONS
SALES & MARKET
CLIMATE ACTION
SUSTAINABLE FEED INGREDIENTS
PEOPLE
20
23
27
31
35
40
43
44
47
50
52
BOARD OF DIRECTORS’ REPORT
CORPORATE GOVERNANCE
GRIEG SEAFOOD GROUP ACCOUNTS
GRIEG SEAFOOD ASA ACCOUNTS
AUDITOR’S REPORT
ALTERNATIVE PERFORMANCE MEASURES
60
75
84
123
139
142
GLOBAL REPORTING INITIATIVE (GRI) INDEX
STAKEHOLDER DIALOGUE
THE SUSTAINABILITY ACCOUNTING STANDARDS
BOARD (SASB) INDEX
AUDITOR’S SUSTAINABILITY REPORT
HISTORY AND FUTURE
146
154
155
156
157
OUR
FOUNDATION
Farming the ocean comes with a responsibility. We are dedicated
to providing healthy seafood to people all over the world while
reducing our footprint and improving fish welfare. People,
partnerships, technologies and innovations will help us get
there. This is our tiny way of making the world a better place.
PART 01
HIGHLIGHTS
KEY FINANCIAL FIGURES
OUR SUSTAINABILITY SCOREBOARD
CEO LETTER
OUR BUSINESS STRATEGY
OPERATIONAL FOCUS AREAS
SUSTAINABLE FOUNDATION
7
8
9
10
11
13
16
HIGHLIGHTS 2023
GROUP
• Harvested volume of 72 015 tonnes
• In the process of identifying long-term partners for the development of the Canadian
• Operational EBIT of NOK 780 million, with Operational EBIT/kg of NOK 10.8
farming operations
• Net profit after tax of NOK 560 million and earnings per share equal to NOK 5.0
• Continued focus on sustainable farming certification with 34 out of 40 eligible sites
• Salmon market remained strong
• Results impacted by historical biological events
• Milestone achieved with first harvest ever in Newfoundland
ASC certified, representing 81% of the harvested volume in 2023
• Dividend proposal of NOK 1.75 per share, subject to approval by the Annual General
Meeting in June 2024
• Improved processing capacity via partnerships and expanded availability of Value-
• Ranked third by the Coller FAIRR Protein Producer Index, acknowledging Grieg
Added Products (VAP)
Seafood as one of the world’s top sustainable protein producers
• Approved a NOK 130 million investment in a secondary processing facility with a
• Received a Leadership (A-) score from CDP for transparency and actions on climate
capacity of at least 10 000 tonnes at Oslo airport
change risks, reinforcing the Group’s environmental commitment
• Identified initiatives to reduce costs by NOK 150 million over the next two years as part
of the ongoing improvement program
ROGALAND
• Harvested volume of 25 980 tonnes
• Best ever Operational EBIT/kg of NOK 28.3 due to a strong market and good price
achievement
• Seawater survival rate of 94% despite challenges posed by ISA in the beginning of the
year, attributed to post-smolt and preventative sea lice measures
• Average smolt weight upon sea transfer at 460 grams
BRITISH
COLUMBIA
• Harvested volume of 17 682 tonnes
• Operational EBIT/kg of NOK -5.3 due to a combination of spot prices in the North
American market under pressure and one-off farming cost
• Good seawater production with a survival rate of 91%
• All eleven sites ASC certified, representing 100% of the harvested volume
• Reduced use of sea lice treatments due to a successful integration of preventive
• No antibiotic used owing to our efforts to ensure robust fish health, including vaccine
measures and mechanical treatments
administration
• 65% of the harvested fish groups in Rogaland required no sea lice treatments,
attributed to post-smolt strategies and other preventative measures
• Six out of eleven sites ASC certified, representing 74% of the harvested volume
• No escapes
• 53% of farms powered by renewable energy
• Respect the UN Declaration on the Rights of Indigenous Peoples (UNDRIP)
• Continued constructive dialogue with Canadian government on "transition" into better
farming practices
FINNMARK
PART 01 - OUR FOUNDATION
• Harvested volume of 25 170 tonnes
• Operational EBIT/kg of NOK 13.0, negatively impacted by a low superior share
• Biological challenges had a significant impact on seawater production
• Executing on post-smolt strategy with the construction of 3 000 tonnes capacity post-
smolt facility in Adamselv, Finnmark
• 17 out of 18 active sites ASC certified, representing 86% of the harvested volume
• 57% of farms powered by renewable energy
NEWFOUND-
LAND
• Successfully conducted the first harvest with a total volume of 3 184 tonnes
• Superior share of 97% and average harvest weight at 4.7 kg
• Continued good seawater production with 12-months survival rate of 95%, driven by
favorable biological conditions and high-quality smolt
• 2.5 million smolt transferred to sea in 2023. Smolt performing well and in good health
• Ground works for expansion of the post-smolt facility developing according to plan
7
KEY FINANCIAL
FIGURES
FIGURE 1.3
SALES REVENUE BY MARKET
Continental Europe
UK
North America
Asia
FIGURE 1.4
HARVEST VOLUME 2023
FIGURE 1.5
SALES REVENUE 2023
FIGURE 1.6
OPERATIONAL EBIT 2023
4%
4%
25%
36%
25%
736
39%
327
-94
-146
35%
33%
Rogaland
Finnmark
British Columbia
Newfoundland
KEY FIGURES NOK MILLION
Operational
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Harvested volume (tonnes GWT)
72 015
84 697
75 601
71 142
71 700
74 623
62 598
64 727
65 398
64 736
Revenue/kg (NOK/kg) 1
Farming cost (NOK/kg) 1
Other costs incl. ownership and
headquarters costs/kg (NOK) 1
Operational EBIT/kg 1
Financial
Sales revenues
Operational EBITDA 1
Operational EBIT 1
EBIT (Earnings before interests
and taxes)
Profit/loss for the year
Cash flow from operations
Capital structure
NIBD according to covenants
requirement 1
NIBD/Harvest (NOK) 1,2
Equity %
Gross investments 1,3
Profitability
Return on Capital Employed
(ROCE) 1
Dividend per share (NOK)
Earnings per share (NOK)
Total market value (Oslo Stock
Exchange)
82.7
70.2
1.7
10.8
7 020
1 334
780
981
560
-302
75.8
52.7
2.5
20.5
7 164
2 191
1 739
1 498
1 154
1 584
55.7
47.2
2.7
5.9
52.8
47.0
2.5
3.3
4 599
4 384
818
442
941
604
601
602
233
-57
-316
412
56.9
40.5
1.3
15.0
4 756
1 384
1 077
822
599
1 193
58.3
43.1
0.5
14.7
7 500
1 334
1 099
1 355
997
820
58.3
43.4
0.4
14.5
7 017
1 106
904
813
601
709
3 873
1 739
1 869
3 679
1 939
1 690
1 284
53.8
49%
880
7%
4.5
5.0
20.5
50%
679
23%
3.0
10.3
24.7
52%
570
6%
0.0
10.7
42.4
41%
979
3%
0.0
-4.8
23.4
46%
667
22.6
48%
733
20.5
47%
553
19%
22%
24%
4.0
5.6
4.0
8.8
4.0
5.0
59.1
39.7
1.4
18.0
6 545
1 342
1 168
1 683
1 222
953
906
14.0
47%
255
33%
1.5
10.7
42.2
37.7
3.8
0.7
39.4
35.2
-1.1
5.3
4 609
4 100
261
48
81
4
367
484
343
219
144
157
1 569
1 566
24.0
38%
322
1%
0.5
-0.1
24.2
42%
312
10%
0.0
1.3
7 748
8 917
9 427
9 643
15 666
11 423
8 068
9 123
3 462
3 182
Ex. Shetland. The Shetland assets was sold 15 December 2021. Figures up to and including 2018 include Shetland, while 2019 and after do not include Shetland.
1 See more information in the Alternative Performance Measures of this report.
2 Net interest-bearing liabilities according to covenant divided by last 12 months harvested volume. For 2020, last 12 months harvest include Shetland (as Shetland was not sold as at
31 December 2020, and NIBD as 31 December 2020 was impacted by our Shetland operations).
3 Incl. financial lease investments. (according to IFRS in force prior to 1 January 2019)
PART 01 - OUR FOUNDATION
8
OUR SUSTAINABILITY
SCOREBOARD
The sustainability scoreboard is a set of some of the key
performance indicators, where we track our performance.
THE COLORS INDICATE
● Within target
● On track to meet our target
● Unsatisfactory result
1) Number of sites certified and % of harvested volume. Newfoundland not yet eligible
for certification.
2) 12 months rolling survival rate calculated according to the GSI standards.
3) Amount of active pharmaceutical ingredients (APIs) used (gr/kg) per tonne of fish
produced (LWE).
4) As of 01.01.2021, the Government of Canada - Department of Fisheries and Oceans
Canada (DFO) changed the calculation formula for the API of hydrogen peroxide from
Paramove 50 from 1 L (Paramove 50) * 1.15 (density) * 0.45 (concentration) = 1 kg
H2O2 to 1 L (Paramove 50) * 1.19 (density) * 0.49 (concentration) = 1 kg H2O2, which
corresponds to the method used in Norway. Previous years (2019 - 2020) have not been
recalculated.
5) LTIR figures are not scored since an LTIR target has not been defined in order to
avoid under-reporting of incidents.
PART 01 - OUR FOUNDATION
PILLAR
KPI
PROFIT &
INNOVATION
Return on capital employed
Farming cost per kg
TARGET
12% p.a.
Cost leader in our operating regions
Rogaland (NOK)
Finnmark (NOK)
British Columbia (CAD)
Newfoundland (CAD)
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
ASC certification1)
82 000 tonnes in 2023
All sites by 2023
Rogaland
Finnmark
British Columbia
Survival rate at sea2)
95% by 2023
Rogaland
Finnmark
British Columbia
Newfoundland
Use of antibiotics (g per tonne LWE)3)
No use of antibiotics
Rogaland
Finnmark
British Columbia
Newfoundland
Sea lice treatments (g per tonne LWE)3)
Minimize use of pharmaceutical treatments
Rogaland
Finnmark
British Columbia
Newfoundland
Use of hydrogen peroxide (kg per tonne LWE)3)
Minimize use of pharmaceutical treatments
Rogaland
Finnmark
British Columbia4)
Newfoundland
Escape incidents
Zero escape incidents in 2023
Rogaland
Finnmark
British Columbia
Newfoundland
Carbon emission (kgCO2e per tonne GWT)
35% reduction (from 2018) in total emissions by 2030
High quality product
Scope 1 + 2 location based
Scope 3
Rogaland
Finnmark
British Columbia
Newfoundland
93% superior share
Absence rate
Below 4.5%
Rogaland
Finnmark
British Columbia
Newfoundland
Lost time incident rate
5)
Rogaland
Finnmark
British Columbia
Newfoundland
SUSTAINABLE
FOOD
PEOPLE
LOCAL
COMMUNITIES
Workplace culture
Above average score in Great Place to Work survey
Support our local communities
Collaborate and contribute to local community
STATUS
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
2023
7%
60.4
64.4
11.2
12.1
2022
23%
48.2
47.3
9.1
n/a
2021
6%
44.6
43.7
8.8
n/a
2020
3%
42.1
44.1
8.0
n/a
2019
19%
35.9
37.7
8.3
n/a
72 015
84 697
75 601
71 142
71 700
6 (74%)
17 (86%)
11 (100%)
5 (53%)
17 (81%)
7 (82%)
0
18 (100%)
12 (47%)
0
15 (88%)
11 (99%)
94%
92%
91%
95%
0.0
2.6
32.6
0.0
0.1
0.9
0.3
0.0
0.0
7.7
17.4
0.0
0
0
2 (301)
0
434
5 306
79%
58%
90%
97%
3.9%
8.0%
3.9%
1.4%
32
22
8
9
92%
91%
91%
n/a
0.0
6.8
34.8
0.0
1.7
0.8
0.2
0.0
0.0
6.5
12.8
0.0
0
92%
95%
92%
n/a
0.0
6.0
41.7
n/a
4.4
0.5
0.3
n/a
1.6
2.4
35.7
n/a
0
1 (2 878)
1 (4 352)
0
n/a
359
4 120
84%
86%
85%
n/a
5.6%
9.7%
6.4%
1.6%
25
21
9
0
2 (4)
n/a
429
4 843
81%
82%
87%
n/a
3.0%
8.7%
5.6%
1.3%
42
22
6
5
90%
92%
90%
n/a
0.0
0.0
62.3
n/a
0.0
1.0
0.2
n/a
7.2
3.6
46.6
n/a
0
0
0
n/a
456
5 720
85%
69%
86%
n/a
3.0%
5.5%
6.8%
n/a
9
28
36
n/a
0
10
n/a
93%
96%
88%
n/a
0.0
0.0
87.0
n/a
0.0
0.3
0.5
n/a
11.9
0.0
6.0
n/a
0
0
0
n/a
431
6 359
75%
86%
86%
n/a
3.5%
4.9%
2.0%
n/a
15
22
35
n/a
74% (global)
85% (global)
85% (global)
84% (global)
79% (global)
yes
yes
yes
yes
yes
9
CEO LETTER
DEAR
SHAREHOLDER
In recent years, Grieg Seafood has achieved several strategic
Expanding our post-smolt strategy is paramount to enhancing
While the underlying biology shows signs of improvement, we
milestones, positioning the company for future value creation.
biology, fish health, and welfare and to minimize interactions
initiated an improvement program in 2023 to comprehensively
We have repositioned Grieg Seafood to Norway and Canada
with wild salmon across all our regions. We have observed
review all aspects of our operations. The aim is to identify areas
where we see significant potential for sustainable growth and
significant biological improvements from post-smolt operations
where we can enhance profitability and streamline costs. Our
aim to become a reliable supplier to key markets. In 2022, we
in Rogaland, where we have been pioneering this production
target is to achieve cost reductions of approximately NOK 150
initiated sea farming operations in Newfoundland, with the first
method since 2019. Notably, we have observed reduced mortality
million over the next two years.
harvests commencing towards the end of 2023. This development
rates during the ocean phase for larger post-smolt groups, along
allows us to cater to the burgeoning North American market
with a marked improvement in sea lice control achieved with
In addition to pursuing short-term return opportunities in
with locally farmed salmon from both Canadian coasts, reducing
preventative measures and no need for treatments. In Rogaland
Finnmark, we recognize the potential for robust and sustainable
reliance on expensive and carbon-intensive air freight.
we will open the second post-smolt facility Årdal Aqua at the end
growth in British Columbia and Newfoundland, particularly
of 2024, allowing us to increase the transfer size on more fish
in Eastern Canada. This region presents significant untapped
The demand for salmon remains robust, driven by increasing
groups in the region. We have also commenced the construction
growth potential and is strategically located near one of the
consumer interest in healthy and sustainably sourced proteins.
of a post-smolt unit at our freshwater facility in Finnmark. This
largest and fastest-growing markets. We are committed to
The establishment of our in-house sales organization has proved
facility is expected to add 3 000 tonnes of post-smolt to the
realizing the sustainable growth potential in Canada. However,
beneficial, facilitating a more integrated approach between
region starting from 2026/2027. We anticipate witnessing similar
the development of Canadian operations requires substantial
production and sales and enhancing the value derived from our
biological improvements in Finnmark as those observed in
investments, especially given the resource tax and overall
fish. We continue to expand our presence in value-added product
Rogaland.
(VAP) markets, with 5% of our harvested volume sold as VAP
inflation, necessitating greater capital discipline. To advance
our growth journey in Canada, we are actively seeking long-
in 2023. Additionally, we have committed to a NOK 130 million
Despite challenges such as outbreaks of ISA leading to
term partners to participate in the development of our Canadian
investment in a new secondary processing facility at Oslo airport,
early harvests in the initial months of 2023, Rogaland has
operations. The process of identifying potential partners is
with a capacity of 10 000-12 000 tonnes, slated to be operational
demonstrated robust biological production with high survival
ongoing.
by 2025.
rates, and achieved their best ever Operational EBIT per kilo.
Following a successful vaccination program for all smolt, we are
It has been a tough year, and my colleagues have worked hard
However, I am not satisfied with our 2023 results. Our results
pleased to see that there is currently no PD or ISA in Rogaland,
in all regions to implement improvement measures and move
were significantly affected by poor biological performance
which have previously been some of our largest challenges.
forward. I want to thank them all for their efforts. I am confident
in Finnmark. Biological challenges have impacted survival
that we are on the right path and that we will see results during
rates and operational efficiency, resulting in reduced volumes,
In British Columbia, seawater production has remained stable.
2024. I also believe that farmed salmon will play an increasingly
increased handling costs, and lower price realization. The Spiro
Despite seasonal challenges associated with sea lice and
important role in producing food from the ocean in the future,
parasite alone is estimated to have caused a total loss of NOK
occurrences of low dissolved oxygen, we have successfully
especially if the seafood industry keeps innovating and improving.
900 million since its detection in 2022 at our freshwater facility
stabilized survival rates through mitigating measures. Moreover,
And we have no intention of doing anything but that.
in Finnmark, with most of the impact already realized. We have
mortality attributed to algal blooms has progressively declined
taken measures to address the challenges both in the short and
over the past years, thanks to our initiatives focusing on algae
medium term. We have implemented measures to prevent Spiro
mitigation, digital monitoring, and aeration systems, reaching a
from entering our facility again with good results. All fish that
low of 1.1% in 2023.
was transferred to the ocean farms in 2023 were Spiro free, and
we expect impact from Spiro to cease after we have harvested
out the last fish groups from the 2022 generation during the
first half of 2024. We are also turning every stone to mitigate
winter ulcers, including new vaccines and probiotic treatments to
enhance fish health. However, due to the long production cycle,
it will take some time to realize the positive impacts of these
measures.
PART 01 - OUR FOUNDATION
In Newfoundland, we successfully conducted the first harvest
with a volume of 3 184 tonnes, a superior share of 97% and
favorable reception from the North American market. The
seawater production in Newfoundland continues to be strong
with a 12-month survival rate of 95%.
ANDREAS KVAME
CEO
10
OUR BUSINESS
STRATEGY
Our business strategy targets three key strategic objectives
for continued business development. The development and
application of increasingly sustainable farming practices
underpins all areas of the strategy.
GLOBAL GROWTH
Ambition of a harvest volume of
120 000-135 000 tonnes
COST IMPROVEMENT
Cost leader in our operating regions
VALUE CHAIN REPOSITIONING
Evolve from raw material supplier
to strategic partner
SUSTAINABILITY
We aim to achieve production growth, cost improvements and to reposition the company in the value chain.
Sustainability is the foundation of all areas of the strategy.
STATUS AND ACTIONS TAKEN IN 2023
GLOBAL GROWTH
Our ambition is to increase harvest to 120 000-135 000 tonnes. Growth will mainly be driven by improved utilization of current operations,
in addition to continue to develop Newfoundland as our new farming region. We will focus on post-smolt investments, target new licenses
and seize opportunities within new technology. In some regions, there is also potential for continued improvement of site utilization. We
also participate in new growth initiatives, M&As, joint ventures and greenfield projects, and seek cooperation with farmers in existing
areas.
STATUS
• In 2023, we harvested 72 015 tonnes compared to 84 697
GOING FORWARD
• We expect further growth to come from increased utilization
tonnes in 2022. Our original harvest guiding for 2023 was
of our seawater licenses by moving more growth to land
87 000 tonnes. Biological events impacted our harvested
through our post-smolt program. We have come far with good
volume, in particular in Finnmark where harvest ended 8 000
results from our post-smolt strategy in Rogaland, and aim to
tonnes lower than expected.
increase post-smolt capacity in Finnmark and BC as well.
• We successfully started harvesting from our Newfoundland
• Better utilization of our seawater licenses, by improving
region in 2023. transferred our first smolt to sea farms in
biosecurity, fish health, welfare and survival rates, is also
2022, and expect to harvest 5 000 tonnes towards the end of
expected to secure on-growth and harvest volumes. Flexibility
2023.
is a requirement to achieve better utilization of our capacity,
• We reached a milestone in the last quarter of 2023, when we
and we are continuously looking for opportunities to secure
started the first harvesting in our Newfoundland region. We
access to new locations.
have good biological results with high survival and high share
of superior quality.
Following the announcement of a resource tax on the salmon
• We invested NOK 525 million in growth initiatives in 2023.
industry in Norway in 2022, we put all investments on hold
Close to 70% of the investments were related to the
until most of the technical details of the tax were clear to
preparation, digitalization and expansion of seawater locations
understand how the additional 25% resource tax would impact
in Newfoundland. We also initiated construction of the new
funds available for investments. Based on our experience with
post-smolt unit at Adamselv in Finnmark. The unit will add
post-smolt in Rogaland, we have chosen to prioritize post-smolt
3 000 tonnes of post-smolt capacity, with the first post-smolt
expansion in Finnmark as the major investment as it is expected
expected to be transferred to sea summer of 2026. We also
to drive biological control, earnings and sustainability. In parallel
continued installation of barrier systems in BC. These allow
with the short-term return opportunities in Finnmark, we are
us to protect the fish at sea during periods of challenging
well positioned for robust and sustainable growth in British
conditions, which we expect will increase survival rates going
Columbia and Newfoundland. Canada, and in particular Eastern
forward.
Canada, is one of the few salmon farming regions globally with
• We have a 44% shareholding in Årdal Aqua, a land-based
a significant untapped growth potential and proximity to one
facility which is expected to produce at least 4 500 tonnes of
of the largest and fast-growing markets. We aim to realize the
post-smolt annually from 2025, with the potential to raise
potential of sustainable growth in Canada. However, developing
fish to harvestable size on land. Construction commenced in
the Canadian operations require substantial investments at a
August 2022 and is progressing according to plan.
time when the resource tax and overall inflation requires greater
capital discipline. We are committed to take the next step of the
growth journey in Canada and will focus on maximizing this value
while also mitigating risks. All plans for expansion in Canada
need to be considered in this context, and for that reason we
are seeking long-term partners to take part in the development
of our Canadian operations. The process to identify potential
partners is ongoing.
PART 01 - OUR FOUNDATION
11
135 000
VALUE CHAIN REPOSITIONING
Our sales currently consist mainly of fresh, head-on gutted salmon. We aim to increase the value of our products through a stronger
presence in the market, based on partnerships, category development and brand cultivation. Repositioning Grieg Seafood from a salmon
raw material supplier to a strategic partner for selected customers is an important part of our value creation plan. Increasing our VAP
share is also an important part of reducing our greenhouse gas emissions.
STATUS
• Key milestones in 2023 were to continue to establish
GOING FORWARD
• We will invest in a new 10 000 - 12 000 tonnes capacity
processing partnerships in Norway and Europe, launch our
secondary processing facility at Oslo airport Gardermoen. This
VAP products in selected markets and boost our VAP share to
will improve the utilization of our production and reduce risk
5-10% of harvested volume. We are in line with our targeted
related to lower superior share, while also provide increased
milestones, and are currently processing salmon into fresh
flexibility and efficiency in our farming operations. The facility
and frozen value added products with partners in Norway,
is expected to be up and running in 2025.
Europe and Western Canada. Furthermore, we have an
• We will also continue to evaluate external opportunities
increasing supply of our own VAP products in the European,
to strengthen our processing capacity, such as long-term
Asian and US markets. 5% of our global harvested volume in
partnerships with third parties in Norway, North America and
2023 was sold as VAP.
Europe, as well as the development of our existing internal
processing infrastructure.
• We are targeting 20-30% share of our volume for VAP by 2026.
In 2024, we expect a VAP share of 7-8% of harvested volume.
• We aim to develop B2B brands going forward. Currently, we
have the successful Skuna Bay brand in the USA.
FIGURE 1.7
OUR GROWTH JOURNEY:
HARVESTED TONNES GWT
Rogaland
Finnmark
BC
Newfoundland
71 142
75 601
84 697
81 000
72 015
Due to the local production arrangements and larger farms on the West Cost of Vancouver Island (where we
harvested from in 2020 and 2022), the harvested volume vary every other year, regardless of the underlying biology.
Rogaland
Finnmark
2020
2021
2022
2023
BC
2024E
Aim
Newfoundland
COST DEVELOPMENT
To be cost competitive in the regions where we farm, we continuously focus on operational performance. Biological control through
preventative measures and fish health and welfare is essential in securing increased survival and reduced production costs. We will also
drive performance improvements through continuous research and development, as well as through the utilization of new technologies.
STATUS
• Over the last two years, our farming cost (cost directly related
GOING FORWARD
• We have launched an improvement program in 2023 to review
to production and harvest of salmon) has increased due to
all aspects of our operations and identify areas where we can
combination of general inflation and biological challenges.In
improve profitability and reduce costs. The program targets
2022, industry cost rose across the board, with feed prices,
cost-reductions of NOK 150 million over the next two years.
in particular, increasing by approximately 40% in Norway and
• While our post-smolt strategy increases investment
close to 20% in BC. This has impacted our farming cost as we
expenditures and smolt costs, we expect it to reduce
have harvested the fish, in particular during 2023 which has
operational expenditures and reduce costs related to
reflected most of the cost increase. The table below shows
mortality, disease outbreaks, sea lice treatments and fish
the underlying farming cost adjusted for general inflation and
handling. Our experience with post-smolt in Rogaland
abnormal mortality only (not taking into account the higher
indicate that less time in the sea reduces both the risk of and
cost of feed). Increased feed prices accounts for a large part
impact from biological challenges such as sea lice, winter
of the cost rise in all regions. The cost in Finnmark in 2023
ulcers and ISA.
is also significantly impacted by challenges in seawater
• In BC, we have had good results with digital monitoring and
production due to Spironucleus Salmonicida (Spiro).
measures to mitigate the effects of harmful algae blooms, our
main biological challenge in the region. The measures have
contributed to a reduction in mortality related to algae blooms
from 3.4% in 2019 to 1.1% in 2023.
FIGURE 1.8
COST DEVELOPMENT
Farming cost/kg
2021
2022
2022 adj for inflation* and abnormal
mortality
Rogaland (NOK)
Finnmark (NOK)
BC (CAD)
44.6
43.7
8.8
48.2
47.3
9.1
44.6
42.2
8.1
2023
60.4
64.4
11.2
*Adjusted to 2021, based on the consumer price index for all goods and services, according to the Statistics
Norway. Newfoundland not included, as 2023 was the first year of harvest and farming cost.
2023 adj for inflation* and abnormal
mortality
54.7
58.4
10.4
PART 01 - OUR FOUNDATION
12
OPERATIONAL
FOCUS AREAS
To achieve sustainable growth and improve competitiveness,
we focus on reducing the time fish spend at sea (post-smolt),
improving fish welfare and providing data-driven decision support
(“Precision Farming”) to our operations. Together, these focus
areas strengthen our ocean farming.
OPERATIONAL FOCUS AREAS
LESS TIME AT SEA
(POST-SMOLT)
PREVENTIVE FARMING
PRACTICES
AND FISH WELFARE
PRECISION FARMING
(DATA-DRIVEN DECISION SUPPORT)
LESS TIME AT SEA (POST-SMOLT)
During the first stages of their life, salmon are raised in onshore freshwater hatcheries. In traditional salmon farming, fish are
transferred to the sea when they have undergone the smoltification process, making them physiologically ready for life in saltwater. With
our post-smolt strategy, we keep the fish longer on land or in closed facilities in the sea, shortening the time that they spend growing
in open sea-pens by several months. Less time at sea will improve biological control, fish welfare, survival and quality because each
salmon is less exposed to biological risks like sea lice, seaborne diseases or other unfavorable ocean conditions such as harmful algae or
sub-optimal oxygen levels. Less exposure to these risks will also allow us to improve sea lice control better utilize preventative methods
and avoid expensive treatments. This will reduce our environmental impact as well as our production cost. Post-smolt also increases
flexibility with regard to the transfer of smolt, allowing us to fallow sites for longer periods if necessary. The fish will be larger and more
robust when entering the sea-growing phase, which we believe will increase health and welfare in and of itself.
Post-smolt transfer also allows for a more efficient production cycle. It takes less time to reach harvestable size in the sea, which
frees up capacity at farms to grow more salmon within existing licenses. The result is a lower environmental footprint per fish, better
fish health and welfare, lower costs, and increased annual harvests. Altogether, we expect post-smolt transfer to reduce operational
expenditure in the sea-growing phase, improve profitability and competitiveness, and provide opportunities for sustainable production
growth.
ACHIEVEMENTS 2023
• In Rogaland, where we are pioneering our post-smolt
strategy:
GOING FORWARD
• We plan to boost post-smolt capacity in Rogaland by at
least 4 500 tonnes. In Finnmark, we target an increase of
– The average smolt transferred to the sea in 2023 weighed
3 000 tonnes of post-smolt with a new unit at our current
460 grams compared to an average of 90 grams in 2014.
freshwater facility in Adamselv.
– Close to 60% of fish harvested were raised from post-
• Grieg Seafood Rogaland aims to increase the average smolt
smolt (fish weighing more than 250 grams when
transfer weight to approximately 1 kg in 2027.
transferred to sea).
– Post-smolt in combination with preventive sea lice
measures indicates a reduction in production time at
sea from 460 days in 2021 to 220 days in 2023 while also
providing a significant reduction in mortality.
– There are strong indications of improved biological control
compared to standard smolt weight, with a significant
reduction in sea lice treatments as the post-smolt weight
increases. 65% of the pens from which fish were harvested
did not receive any sea lice treatment, up from 43% in 2021
and 54% in 2022.
– Our results so far demonstrate stable production of post-
smolt up to 1 kg.
PART 01 - OUR FOUNDATION
13
PREVENTION AND FISH WELFARE
We pursue a systematic, long-term approach to fish health and welfare. The key is investment in and further development of preventive
measures against seaborne hazards, such as sea lice, harmful plankton, jellyfish, low oxygen levels, infectious diseases and low
seawater temperatures.
Prevention will reduce handling and stress for the fish. It will also reduce our environmental footprint by, for instance, reducing the
number of treatments needed. Moreover, prevention instead of handling reduces production costs. The result is improved welfare,
stronger growth, increased survival, high harvesting quality and lower costs.
ACHIEVEMENTS 2023
• In 2022, the parasite Spironucleus Salmonicida (Spiro) was
GOING FORWARD
• We continue to work with academia to investigate and learn
detected in fish from our freshwater facility in Finnmark. The
more about the parasite Spiro. We also participate in multiple
source of the parasite is believed to be the water intake to the
industrial R&D projects to share and identify best practices for
facility. In 2023, we invested NOK 70 million in top-notch UV
winter ulcers and jellyfish, amongst other seaborne hazards.
treatment and purification systems to reduce future risks of
• Some of our numerous ongoing initiatives to improve fish
Spiro entering the facility. We also collaborate with research
health and welfare throughout the production cycle include
institutions to close knowledge gaps related to Spiro. We have
the selection of roe with specific qualities related to sea
not had any new detections of Spiro at the freshwater facility.
lice and diseases, feed customized for the various stages of
• Winter ulcers have been a recurring issue for the Norwegian
the salmon’s life cycle, and vaccinations targeting specific
salmon farming industry the last years, and have impacted
diseases:
our harvest in Finnmark. We have implemented new vaccines
– We have enhanced our feed for use during the winter
and are testing "probiotica" treatments before transfer to sea
period, utilizing best available science, to strengthen
to increase robustness. Preliminary results will be available
health, welfare, robustness and quality. Examples of
during Summer of 2024.
changes are increased levels of essential marine fat and a
• In BC, we have installed a combination of aeration/oxygen
stronger vitamin mix.
generation systems and retractable barriers to keep harmful
–
Initiatives to optimize health, welfare and robustness
algae outside and push clean and oxygenated water up to the
of smolt and post-smolt by conducting data analysis on
fish during periods of harmful algae blooms or sub-optimal
historical production data to provide decision-making
oxygen levels. The effect is increased survival and continued
support.
feeding and on-growth during challenging conditions, as well
– Efforts to mitigate the negative impact mechanical sea lice
as better sea lice control. Mortality related to algal blooms
treatments may have on fish health and welfare. Mortality
has been stable the last year due to our efforts relating to
caused by such treatments has been reduced, and we are
algae mitigation, digital monitoring and aeration systems, and
working to reduce it further.
came down from 3.4% in 2019 to 1.1% in 2023.
– We have developed our own fish welfare indicators, based
• In Rogaland, due to post-smolt and the use of cleaner fish as
on the Fishwell research project, to enable us to more
a preventive method to control sea lice, 65% of the pens of fish
systematically assess and improve fish welfare throughout
harvested did not receive any sea lice treatments in 2023.
our operations.
PART 01 - OUR FOUNDATION
14
“PRECISION FARMING” - DATA-DRIVEN DECISION SUPPORT
“Grieg Seafood Precision Farming” is our concept for digitalizing farming operations, where we apply advanced sensors, data analytics,
artificial intelligence, and prediction models with the aim of supporting our farmers to take insight-based decisions before eventual
negative impact occurs in everyday operations. The aim is to implement more automation, work more preventatively, improve fish
welfare, reduce our impact, and improve our farming. We are gaining positive results by combining experience-based knowledge and
data-based insight in our projects.
Data analyses on previously unknown connections between the fish and the environment provide insights for strategic decision-making.
The use of digital tools and dashboards, providing real-time data on various farming parameters to operational centers as well as to
farmers, aims to improve tactical and operational decisions. They also allow us to benchmark on new parameters and learn better from
best practice. We aim to be able to predict negative events early, enabling us to apply preventative measures and improve management
decisions. The result is expected to be increased growth, reduced environmental impact, improved fish welfare, increased productivity
GOING FORWARD
• Implementing ChatGPT to internal library of scientific articles,
internal documents etc., to increase internal competence and
knowledge sharing (GSF SalmoPedia).
• Implementing prediction tools to improve the process
between sales, processing, and harvest planning (GSF AI
Harvest Hub).
• Continuing set up of integrated operation centers in both
Newfoundland and Finnmark as a continuation of our strategy
to strengthen our seawater production by enforcing the
utilization of digital capabilities in the group. Both centers will
be built to the same design and with similar capabilities as we
are running in Rogaland.
and lower costs. Read more about Precision Farming here.
ACHIEVEMENTS 2023
• Our internal analysis team has continued with new data
analyses to provide strategic and tactical decision-making
support, aimed at mitigating biological challenges:
–
Introduced concept of data democratization to enable
production managers and biological planners to perform
data analysis and gain insights based on facts, including
simple simulation capabilities.
– Analysis of the drivers behind risk of mortality in sea
lice treatment methods. Findings gives the operational
personnel decision support when choosing treatment
methods.
– Developed models for prediction of harvest distribution
and quality, based on historical data.
–
Implemented common dashboards for environmental
monitoring in freshwater production. Enables production
managers to analyze water chemistry towards production
variables, and to benchmark against the other facilities
and regions.
–
Implemented tools enabling operation managers to
optimize input to sea for reducing winter ulcers in
Finnmark. The optimization is based on prediction models
developed on markers in historical data found in analytic
projects.
– Analysis to find markers in the feeding data from our
integrated operation center to improve growth and reduce
feed waste. Developing AI models for prediction of feed
next day based on historical data together with testing of
autonomous feeding.
– Finalized project to identify the eFCR, bFCR and growth
rates for different smolt sizes throughout the whole
production cycle (freshwater & seawater), including the
optimal smolt size given location, time of input and cost.
– Benchmarking genetics providers on fish performance in
sea, utilizing full traceability in the data from harvest to
egg. Findings will be used to optimize production and input
to sea.
PART 01 - OUR FOUNDATION
15
SUSTAINABLE
FOUNDATION
OUR FIVE PILLARS AND MATERIAL TOPICS
Grieg Seafood's business is based on sustainable operations. In our long-term perspective, there is no contradiction between clean seas,
healthy fish, and financial profit. It is our task to make these aspects go hand in hand and contribute to a sustainable ocean economy. Our
targets go beyond short-term profitability. Based on our materiality assessment, our five pillars show our commitment to sustainable and
long-term value creation for all of our stakeholders. The topics listed under each pillar is identified as important to our organization and
our stakeholders, and is covered by group policies. The topics in red represents the list of material topics reported in line with the GRI
standards. Find a combined overview of our pillars, targets and Group policies here.
HEALTHY OCEAN
SUSTAINABLE
FOOD
PROFIT &
INNOVATION
PEOPLE
LOCAL
COMMUNITIES
S
R
A
L
L
I
P
R
U
O
T
N
E
M
N
G
I
L
A
G
D
S
I
S
C
P
O
T
L
A
R
E
T
A
M
I
• Fish health &
• Safe and healthy
• Profitable
• Human rights
• Local value
welfare
food
operations
• Embracing
• Protecting wild
• Sustainable feed
• Our market
diversity
creation
• Indigenous
salmon (escape
ingredients
• Research,
• Creating attractive
relationships
• Climate action
• Recycling
and waste
management
development and
jobs
innovation
• Responsible
business conduct
• Keeping our
employees safe
• Dialogue and
engagement
• Plastic pollution
• Corporate
governance
and sea lice
control)
• Protecting
biodiversity
& marine
ecosystems
(local emissions,
medicine
use, wildlife
interaction)
PART 01 - OUR FOUNDATION
16
FINANCIAL IMPACT OF MATERIAL ESG TOPICS
All material areas, as well as many significant ones, are covered by Group
policies, to ensure a systematic improvement efforts across the Group.
While managing many of these risks is an ethical responsibility, it also
supports our financial performance directly or indirectly.
Our impact and
principles: Fish health
and welfare
Policy for fish health
Policy for fish welfare
Policy for use of
antibiotics
Our impact and
principles: Co-existence
with wild salmon
Policy for protecting
biodiversity
PILLAR
MATERIAL
AREA
Fish health
and welfare
FINANCIAL IMPACT
ANNUAL TARGET
LINK TO MANAGEMENT
APPROACH
Mainly direct financial impact: Fish with good health and welfare grow
well. Health and welfare is important to secure the highest possible
harvest volume with the highest possible quality. Diseases and
treatments on the other hand, are key cost drivers.
95% survival at sea
by 2023
No use of antibiotics
Protecting
wild salmon -
escape
Mainly indirect financial impact: Escaped fish may interbreed with wild
salmon in some of our farming regions. Escape events increase risk of
stricter regulations and reduce the social license to operate needed to
achieve growth.
Zero escape
incidents
Protecting
wild salmon
- sea lice
control
Mainly direct financial impact: Controlling sea lice through preventative
methods is the most cost-efficient approach. Sea lice treatments are
resource intensive and increase production cost.
Average adult
female sea lice
below 0.5 in Norway
/ average motile sea
lice below 3.0 in BC
Our impact and
principles: Co-existence
with wild salmon, and
Co-existence with
crustaceans
Protecting
biodiversity
and marine
ecosystems -
local emission
Mainly direct financial impact: Good sites that restore easily during the
fallowing period between each production cycle are the most optimal
for salmon production. They do not only have the lowest impact on the
marine ecosystem, they also typically have the best fish health, welfare,
growth and lowest cost.
All sites restored to
regulatory accepted
level between each
generation of fish
Protecting
biodiversity
and marine
ecosystems -
medicine use
Protecting
biodiversity
and marine
ecosystems -
wild life
interaction
Safe and
healthy food
See sea lice control above.
Mainly indirect financial impact: Impacting wild life around our farms
increases risk of stricter regulations, and reduce the social license to
operate needed to achieve growth.
Mainly direct financial impact: If our product does not meet health
and safety expectations, we risk losing confidence with our customers,
leading to loss of revenues.
No use of copper
in nets
Minimize use of
pharmaceutical
treatments
Zero dead marine
animals
Number of dead
birds in compliance
with ASC
All our operations
certified according
to a Global Food
Safety Initiative
See more targets in
the policy
Policy for sea lice control
Our impact and
principles: Impact on
nature
Policy for protecting
biodiversity
Our impact and
principles:
Co-existence with
crustaceans
Policy for protecting
biodiversity
Our impact and
principles:
Co-existence with wild life
Policy for protecting
biodiversity
Our impact and
principles: Safe food
Policy for food safety
Healthy
ocean
Sustain-
able food
PART 01 - OUR FOUNDATION
PILLAR
MATERIAL
AREA
Sustainable
feed
ingredients
FINANCIAL IMPACT
Mainly indirect financial impact: Fish feed comprises approximately
40% of the farming cost. Ensuring access to a broad basket of potential
feed ingredients that are accepted by the consumer is important to
keeping costs down. Working proactively to improve the sustainability
of salmon feed and ensure that it meets the requirements of the future
consumer is key to ensure access to various feed ingredients and the
lowest possible feed cost in the short, medium and longer term.
Sustain-
able food
ANNUAL TARGET
LINK TO MANAGEMENT
APPROACH
All marine
ingredients, palm
oil and Brazilian soy
protein concentrate
certified
GHG emissions
from feed reduced
by 30% from 2018
to 2030
See more targets in
the policy
Our impact and
principles: Sustainable
feed ingredients,
Sustainable marine
ingredients, Zero
deforestation
Policy for sustainable
feed
Climate action Direct financial impact: Physical climate risks, such as increased
water temperature in the ocean, may in the longer run cause financial
impacts if they are not mitigated.
35% reduction of
Scope 1, 2 and 3 by
2030
Our impact and
principles: Reducing
carbon emissions
Indirect financial impact: Efforts to reduce carbon emissions reduce
transitional climate risks, such as impacts of future carbon taxes or
regulations
Responsible
business
conduct
Mainly indirect financial impact: Strong corporate governance is
essential to achieve our objectives. Breaches and non-compliances can
lead to fines and lawsuits, impacting revenues and costs.
No incidents of non-
compliance
Profit &
innovation
Corporate
governance
Human rights Mainly indirect financial impact: Promoting respect for human rights in
our operations and supply chain supports our social license to operate,
our reputation and attractiveness in the market, all of which underpin
growth and price achievement
100% completion
of Code of Conduct
program.
Human Rights Due
Diligence
People
Keeping our
employees
safe
Mainly indirect financial impact: A safe workplace with good conditions
is a prerequisite for good performance.
Absence rate below
4.5%
Local
comm-
unities
Local value
creation
Mainly indirect financial impact: Contributing to the rural communities
where we operate is key to our social license to operate, which
underpins our growth ambitions and a prosperous industry.
Collaborate and
contribute to local
community
Indigenous
relationships
Mainly indirect financial impact: Respecting Indigenous people’s rights
in the relevant regions is also key to our social license to operate.
Policy for climate action
TCFD report
Code of Conduct
Supplier Code of Conduct
Policy for anti-money
laundering
Policy for anti-corruption
Governing policies
including Principles of
Corporate Governance
Our impact and
principles: Human rights
Policy for human rights
Our impact and
principles: Health and
safety
Policy for diversity
Policy for gender equity
Policy for HSE
Rogaland
Finnmark
British Columbia
Newfoundland
Our impact and
principles: Indigenous
relationships
17
THE SUSTAINABLE
DEVELOPMENT GOALS
R&D ACTIVITY
The UN Sustainable Development Goals guide us
towards a more sustainable food system. They highlight
opportunities to grasp and challenges to solve - both in
our farming operations and in our value chain. Read how
Grieg Seafood aligns with the various SDGs here.
R&D is inherent to delivering on our strategy and targets,
such as improvements in fish welfare, sustainability, cost
control and product quality. Read about our efforts here.
GLOBAL SUSTAINABILITY
INITIATIVES
PARTNERSHIPS AND
COLLABORATION
Grieg Seafood has committed to several initiatives that
Collaboration and partnerships with researchers, peers,
set high standards for our farming operations and value
companies in our value chain, NGOs or other relevant
chain. Initiatives range from ocean stewardship to the
actors is highly valued by Grieg Seafood. Only through
climate, deforestation, and human rights. Read more
collaboration can we drive necessary change, and solve
about these initiatives here.
the challenges we have in our industry and in our global
food system. Read more about our partnerships here.
PART 01 - OUR FOUNDATION
18
OUR
OPERATIONAL
RESULTS
We aim to create shared value for shareholders,
employees, local communities and customers alike.
PART 02
OPERATIONAL RESULTS FROM OUR
FARMING AND SALES ACTIVITIES
RESULTS FROM SELECTED
SUSTAINABILITY TOPICS
PROFITABLE OPERATIONS
EU TAXONOMY
GRIEG SEAFOOD ROGALAND
GRIEG SEAFOOD FINNMARK
GRIEG SEAFOOD BRITISH COLUMBIA
GRIEG SEAFOOD NEWFOUNDLAND
OUR CERTIFICATIONS
SALES & MARKET
CLIMATE ACTION
SUSTAINABLE FEED INGREDIENTS
PEOPLE
20
23
27
31
35
40
43
44
47
50
52
PROFITABLE
OPERATIONS
We aim to provide our shareholders with a competitive return on
capital invested, with a ROCE target of 12%. With initiatives to
reduce our environmental impact and improve fish welfare,
we aim to increase harvest rates and reduce production costs.
GROUP FINANCIAL RESULTS 2023
PROFIT AND LOSS
The Group harvested 72 015 tonnes GWT of Atlantic salmon in
2023, down 15% compared to 84 697 in 2022. Our Norwegian
regions contributed 71% (76%) of the volume harvested, while the
Canadian regions contributed 29% (24%).
Total sales revenue for the year came to NOK 7 020 million,
down NOK 144 million from NOK 7 164 million in 2022. Sales
revenues from the Group’s farming regions totaled NOK 5 956
million in 2023, down NOK 462 million from NOK 6 418 million in
2022 (see Note 5 to the Group Accounts). The difference between
the total sales revenue for the Group and sales revenues from
farming regions is attributable to Elim/Other effects (see Note
5 to the Group Accounts), which includes the gross uplift on
sales revenue for the Group generated by the sales organization.
The Group's price achievement for the year was NOK 82.7 per
kg (NOK 75.8 per kg) on aggregate for our farming regions. By
comparison, the average NQSALMON NOK/kg price for 2023 was
NOK 92.3 per kg (82.0). Price realization was negatively impacted
by fixed-price contracts for some of our Norwegian harvested
volume, as well as the lower price achieved for production grade
volumes. The lower sales revenue for the Group compared to last
year is mainly due to a lower harvested volume.
The Group's farming cost for 2023 ended at NOK 70.2 per kg
(NOK 52.7 per kg). In total, our Norwegian farming regions
contributed to 63% (69%) of the farming cost, an increase of NOK
14.6 per kg from NOK 47.7 per kg in 2022 to NOK 62.3 per kg in
2023. British Columbia had, on a 13% lower harvest volume year-
on-year, a farming cost of CAD 11.2 per kg, up CAD 2.0 per kg
compared to CAD 9.1 per kg in 2022. The increased farming costs
is primarily due to inflation pressure on key input to production
throughout 2022, which impacted our EBIT in 2023 when the
fish was harvested. This is due to the long production cycle for
Atlantic salmon, where the cost to produce the biological assets
are capitalized to the balance sheet and released to the income
statement at the point of harvest (if not previously expensed as
abnormal mortality). Additionally, we have also had lower growth
than expected, which all else equal increase cost per kg due to,
on the short term, fixed costs in the cost base of the farming
operations.
Raw materials and consumables, which consist mainly of the
Group’s freshwater and seawater fish stocks, in addition to
feed, ended at NOK 2 748 million, up NOK 514 million from the
NOK 2 234 million recognized in 2022. Salaries and personnel
expenses ended the year at NOK 726 million, an increase of
NOK 30 million from NOK 696 million in 2022. Other operating
expenses ended at NOK 2 236 million, up NOK 149 million
compared to NOK 2 087 million in 2022.
Operational EBIT (see Alternative Performance Measures) in
2023 ended at NOK 780 million (NOK 1 739 million), equivalent
to an Operational EBIT of NOK 10.8 per kg (NOK 20.5 per kg).
The decrease was driven by lower harvested volume and higher
farming cost. The ROCE for 2023 ended at 7%, compared to 23%
in 2022.
EBIT (earnings before interests and taxes) came to NOK 981
million, down NOK 517 million compared to NOK 1 498 million in
2022.
For a more detailed review of the Group’s financial performance
in 2023, see the Board of Directors’ report.
PART 02 - OUR OPERATIONAL RESULTS
Shetland was sold 15 December 2021. The figures from 2019 to 2021 are ex. Shetland, as the assets was held for sale as from 2020 and presented as discontinued operations.
FIGURE 2.1
KEY FIGURES GRIEG SEAFOOD GROUP
NOK MILLION
Sales revenues
Operational EBITDA
Operational EBIT
EBIT (Earnings before interests and taxes)
Harvest volume (tonnes GWT)
Farming cost/kg (NOK)
Operational EBIT/ kg (NOK)
ROCE
2019
4 756
1 384
1 077
822
2020
4 384
602
233
-57
2021
4 599
818
442
941
2022
7 164
2 191
1 739
1 498
2023
7 020
1 334
780
981
71 700
71 142
75 601
84 697
72 015
40.5
15.0
19%
47.0
3.3
3%
47.2
5.9
6%
52.7
20.5
23%
70.2
10.8
7%
20
DIRECT ECONOMIC VALUE GENERATED
Taxes are important sources of government revenue. They
acquisition cost for tax purposes for the acquired biomass from
are central to the fiscal policy and macroeconomic stability of
Grieg Seafood Rogaland AS and Grieg Seafood Finnmark AS.
countries and are acknowledged by the United Nations to as
playing a vital role in achieving its Sustainable Development
The information on the creation and distribution of economic
Goals. Furthermore, they are a key mechanism by which
value shall provide a basic indication of how we create wealth
organizations contribute to the economies of the countries
for our stakeholders. In addition, the components of the
in which they operate, i.e. Norway and Canada for Grieg
economic value generated and distributed sharpen Grieg
Seafood. By reporting our taxes paid country-by-country, we
Seafood’s economic profile, permit a different interpretation
indicate our scale of activity and the contribution we make
of the economic figures and outline the overall economic value
through tax in these jurisdictions. Living up to our obligation to
retained from the Group’s ordinary operations during the
comply with tax legislation and our responsibility to meet our
year. In 2023, the economic value retained came to NOK -312
stakeholders expectations with respect to good tax practice is
million, corresponding to a decrease of about NOK 1 862 million
extremely important to us.
compared to 2022.
In 2023, the Norwegian Parliament passed the resource tax
scheme on aquaculture in Norway. The tax scheme applies to net
profits from commercial sea-phase salmon aquaculture activity
in Norway. This is an additional layer of taxation on aquaculture
on top of ordinary corporate income taxation of 22%, bringing
the total marginal tax rate for the in-scope aquaculture activity
to 47%. Corporate taxes paid in 2023 are higher than 2022 and
prior years primarily due to Grieg Seafood Rogaland AS and Grieg
Seafood Finnmark AS, following a reorganization of commercial
aquaculture licenses in Norway, chose to capitalize the
FIGURE 2.2
TOTAL TAXES (INCOME AND PROPERTY TAX) PAID IN 2023
(NOK million)
Norway
Canada
UK
Total taxes paid
784
83
—
867
FIGURE 2.3
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED
FIGURE 2.4
VALUE RETAINED IN 2023
NOK MILLION
Value generated
Revenues
Total value generated
Value distributed
2019
2020
2021
2022
2023
4 756
4 756
4 384
4 384
4 599
4 599
7 164
7 164
7 020
7 020
Salaries and personnel expenses
493
500
577
696
726
Operating cost
Raw materials and consumables used
Other operating expenses
Payments to providers of capital
Net interest and other financial items
Paid dividends
Payments to government
Income taxes and production fee
Total value distributed
1 498
1 407
64
442
128
4 033
1 717
1 593
133
—
205
4 148
1 738
1 527
200
—
31
4 075
2 234
2 087
140
337
120
5 614
2 748
2 236
222
504
896
7 331
Total value retained
723
237
524
1 550
-312
All figures compiled from the audited Group accounts.
PART 02 - OUR OPERATIONAL RESULTS
12.2%
9.9%
6.9%
3.0%
30.5%
37.5%
21
Salaries and personnel expenses
Raw materials and consumables used
Other operating expenses
Net interest and other financial items
Paid dividends
Income taxes and production fee
Salaries and personell expenses
Raw materials and consumables used
Other operating expenses
Net interest and other financial items
Paid dividends
Income taxes and production fee
CREATING SHAREHOLDER VALUE
Our ambition is to create shareholder value and deliver
Company’s shares, with the Grieg family controlling 50.17% of
competitive returns relative to comparable investment
the outstanding shares as of 31 December 2023. A further 4.5%
alternatives. We engage with the investor community in an
was controlled by OM Holding AS and 2.1% by Folketrygdfondet
open, transparent and continuous dialogue. Building trust and
(the Norwegian National Insurance Fund) at year-end 2023.
awareness is critical to ensure that the information disclosed to
Grieg Seafood ASA held a total of 1 313 654 treasury shares as of
the financial market, including current and potential investors,
31 December 2023. For a detailed breakdown of our 20 largest
analysts and other stakeholders, provides the best possible basis
shareholders, please see Note 24 of the Group Accounts.
for a correct valuation of Grieg Seafood.
Grieg Seafood was listed on the Oslo Stock Exchange/Euronext
dividends should correspond to 30-40% of the Group’s profit after
on 21 June 2007, under the ticker GSF. We have only one class of
tax, before fair value adjustment on biological assets (limited to
shares, and all shares carry the same rights. As of 31 December
50% by Green Bond agreement). At the same time, the Group’s
2023, the Company had 112 133 388 shares outstanding, at a
net interest-bearing debt per kg harvested salmon should
nominal value of NOK 4.00 per share (excluding treasury shares).
remain below NOK 40, but can be exceeded in periods of growth
Total ordinary shares as at 31 December 2023 was 113 447 042.
investments. In 2023, the Group distributed a dividend of NOK
The Board of Directors maintains that, as an average over time,
4.5 per share to shareholders, which correspond to 48% of the
As of 31 December 2023, we had 10 445 shareholders, with our
net profit for FY 2022, before fair value adjustment of biological
ten largest investors holding 65.8% of our shares, and the 20
assets. As at 31 December 2023, Grieg Seafood was in a good
largest investors holding 74.3%. The number of shareholders
financial position to execute strategic priorities. Based on the
increased during the year, from 10 590 at year-end 2022.
2023 financials, the Board of Directors proposes a dividend of
Norwegian-based shareholders own the majority of the
NOK 1.75 per share (equivalent to NOK 196 million) be distributed
to shareholders in 2024. The proposed dividend is subject to
approval by the Annual General Meeting of Grieg Seafood ASA in
2024.
FIGURE 2.5
GEOGRAPHICAL OWNERSHIP (NUMBER OF SHARES)
FIGURE 2.6
THE GRIEG SEAFOOD SHARE
KEY FIGURES GRIEG SEAFOOD SHARE
2019
2020
2021
2022
2023
Number of shares at year-end (incl. own shares)
111 662 000
113 447 042
113 447 042
113 447 042
113 447 042
Number of shares traded
Number of shareholders
Total value of shares traded per day (NOK million)
Average number of shares traded per day
Median number of shares traded per day
72 001 397
99 831 798
85 769 401
86 797 490
77 793 571
4 968
33.7
289 162
240 801
12 436
37.5
396 158
317 106
9 938
28.5
340 355
265 456
10 590
35.8
343 073
283 718
10 445
23.4
327 148
234 696
Total market value OSE (NOK 1 000)
15 666 178
9 642 999
9 427 449
8 916 938
7 748 433
Share price at year-end (NOK)
Average share price (NOK)
Lowest closing price (NOK)
Highest closing price (NOK)
Dividend per share
LEARN MORE ON OUR WEBSITE
→
Our share, shareholders and dividends
140.3
118.0
96.8
146.8
4.0
85.0
99.1
66.3
144.9
—
83.1
84.4
73.2
95.6
—
78.6
108.1
63.0
154.0
3.0
68.3
76.0
60.6
90.6
4.5
22
Norway
UK
EU
USA
Other
PART 02 - OUR OPERATIONAL RESULTS
contracts, well-boats which is utilized in the farming operations
• Grieg Seafood has a group wide and global approach to the
We believe that the sustainable production of salmon is vital
primarily for treatments, smolt transportation and transportation
assessment of minimum safeguards.
to feed a growing population in the world. As at year-end 2023,
EU TAXONOMY
BACKGROUND AND SCOPE
The EU taxonomy serves as a classification framework
that defines a set of economic activities considered to be
of fish to harvesting plants. Well-boats are designed and
equipped for transportation of fish.
environmentally sustainable. Its primary goal is to facilitate
the expansion of investments in environmentally sustainable
7.7. Acquisition and ownership of buildings
The activity refers to buying real estate and exercising ownership
practices, contributing to the achievement of the European
of that real estate. Grieg Seafood owns and operates buildings
Union's 2030 climate and environmental goals and advancing the
and lease properties through its ordinary course of business.
objectives outlined in the European Green Deal. Environmentally
We have an integrated value chain, and own broodstock, smolt
sustainable economic activities are described as those which
facilities and harvesting plants on land, in addition to owned and
The assessment of the eligible activities has resulted in none of
eligible activity according to the EU Taxonomy, and consequently
the activities being taxonomy aligned as at 31 December 2023.
are treated as a non-eligible activity for 2023.
aquaculture has not been defined as either an eligible or non-
NON-ELIGIBLE ECONOMIC ACTIVITIES
Our climate action target is to reduce carbon emissions by 35%
towards 2030, and by 100% in 2050, with 2018 as the baseline
KPI DENOMINATOR
year. This reduction target is for Scope 1, 2 & 3. Our carbon
emission reduction targets are classified as well-below 2°C
REVENUE (TURNOVER)
Revenue represent Grieg Seafood’s total revenue from contracts
“make a substantial contribution to at least one of the EU’s
leased buildings that function as land bases in the near proximity
global warming, and aligned with the Paris Agreement. Our
with customers, in addition to rental income. A specification is
climate and environmental objectives, while at the same time
of certain fish farms in our regions. Additionally, we own and
emission targets have been approved by the Science Based
provided below.
not significantly harming any of these objectives and meeting
lease administration buildings for our farming regions, sales
Targets initiative (SBTi).
minimum safeguards.”
operations and corporate headquarter.
As a non-financial company, Grieg Seafood ASA is in scope of
the Taxonomy Regulation (EU) 2020/852 and the Delegated
Acts to disclose information on the proportion of the company's
revenue (turnover), capital expenditure (CapEx), and operating
DETERMINING WHETHER ELIGIBLE
ACTIVITIES ARE ALIGNED WITH THE
TAXONOMY CRITERIA
The EU Taxonomy regulation sets out four overarching conditions
REVENUE NOK MILLION
NOTE
Revenue from contracts with customers
Note 6 to the Group Accounts
expenses (OpEx) associated with assets or processes related
that an economic activity must meet in order to qualify as
Rental income
Note 28 to the Group Accounts
Total revenue according to EU Taxonomy
2023
7 020
9
7 028
to environmentally sustainable economic activities. The
environmentally sustainable. Firstly, the activity must do a
information is compiled on a Group consolidated level displayed
substantial contribution to at least one of the six environmental
in Norwegian Kroner (NOK), consistent with the format used
objectives, Secondly, the activity must do no significant harm to
in the consolidated financial statements. For the mandatory
any of the other five environmental objectives. Third, the company
KPI’s under the EU Taxonomy, further information concerning
must comply with the minimum safeguards. And forth, the
reconciliation with the consolidated financial statements of Grieg
activity must comply with the technical screening criteria set out
Seafood has been provided below.
in the Taxonomy Delegated Acts.
ELIGIBLE AND ALIGNED ECONOMIC
ACTIVITIES
Grieg Seafood has established that economic activities qualify as
eligible if they can be evaluated against the technical screening
criteria outlined in the Climate Delegated Act and possess
the potential to either be or become taxonomy-aligned. Grieg
Seafood has identified the following economic activities to be in
scope of EU taxonomy reporting as of year-end 2023:
6.5 Transport by motorbikes, passenger cars and light commercial
vehicles
This activity refers to the purchase, financing, renting, leasing
and operation of vehicles, for the Group, typically passenger cars.
Grieg Seafood utilizes passenger cars, both owned and leased, as
a means of transportation of personnel between farms, our land
based facilities and administration offices sites.
6.10 Sea and coastal freight water transport, vessels for port
operations and auxiliary activities
This activity refers to operation of vessels designed and equipped
for transport of freight or for the combined transport of freight
and passengers on sea or coastal waters, whether scheduled or
not, and auxiliary activities. For this activity, we have allocated
CapEx and OpEx related to assets that are designed and equipped
for the transportation of freight, including fish, irrespective of
the usage of the asset. This is particular relevant for well-boats.
Grieg Seafood operates, through long-term time charter
PART 02 - OUR OPERATIONAL RESULTS
TECHNICAL SCREENING PROCEDURES
Grieg Seafood has implemented the assessment of technical
screening criteria for the environmental objectives climate
change mitigation and climate change adaptation according to
the EU Taxonomy. For 2023, Grieg Seafood’s activities relate to
climate change mitigation.
An economic activity contributes substantially to the
environmental objective climate change mitigation where
that activity contributes substantially to the stabilization of
greenhouse gas concentrations in the atmosphere at a level
consistent with the Paris Agreement.
Grieg Seafood has carried out the technical screening procedures
as follows:
• The compliance with the substantial contribution criteria is
assessed individually for each identified economic activity.
Where the activities have been assessed as similar across
segments, the activity has been assessed at Group level.
• Assessment of the do no significant harm-criteria has been
assessed individually for each identified economic activity.
Where the activities have been assessed as similar across
segments, the activity has been assessed at Group level.
CAPITAL EXPENDITURES
Total capital expenditures (CapEx) according to the EU Taxonomy consists of additions of property, plant and equipment including
right-of-use assets and additions to intangible assets. The total CapEx according to the EU Taxonomy is consistent with the consolidated
financial statement of Grieg Seafood. A specification is provided below.
CAPITAL EXPENDITURES NOK MILLION
NOTE
Intangible assets
Note 13 to the Group Accounts
Property, plant and equipment incl. right-of-use assets
Note 14 to the Group Accounts
Total CapEx according to EU Taxonomy
2023
2
1 529
1 530
Grieg Seafood is a salmon farming company, and we hold biological assets on our balance sheet. According to the EU Taxonomy,
additions to biological assets are a part of CapEx. For Grieg Seafood, biological assets is classified as current assets and a part of the
Group’s working capital. Additions to biological assets (at cost) has therefore not been included as part of the CapEx reported under the
EU Taxonomy as stated in the table above, since biological assets is not property, plant and equipment.
OPERATING EXPENSES
Total operating expenses (OpEx) according to the EU Taxonomy covers the direct non-capitalized costs that relate to research and
development, building renovation, short-term leases, maintenance and repair, and any direct expenditures relating to the day-to-
day servicing of assets of property, plant and equipment that are necessary to ensure the continued and effective functioning use of
such assets. The definition of OpEx under the EU Taxonomy is not consistent with the operating expenses as included in the Group’s
consolidated financial statement. In short, the OpEx under the EU Taxonomy cover only part of the operating expenses in the consolidated
financial statement, as the EU Taxonomy’s OpEx definition is more narrow.
OPERATING EXPENSES NOK MILLION
NOTE
Other operating expenses
Note 9 to the Group Accounts
Other operating expenses according to IFRS, not defined as
OpEx according to the EU Taxonomy
Total OpEx according to EU Taxonomy
2023
2 236
1 845
391
23
KPI NUMERATOR
The KPI numerators of consist of the taxonomy-eligible and taxonomy-aligned revenue, CapEx and OpEx that are included in the
denominator.
MINIMUM SAFEGUARDS
Grieg Seafood ensures that its economic activities strictly adhere to minimum safeguards, with the majority of these principles being
addressed through Group policies that are in alignment with both national and global regulations.
HUMAN RIGHTS
CORRUPTION
TAXATION
FAIR COMPETITION
1. Grieg Seafood is committed
1. Grieg Seafood perform risk
1. Grieg Seafood treat tax
1. Grieg Seafood ensures
assessments of our operations
and have mitigating measures and
controls to prevent corruption. We
also perform risk assessments of
the countries where we operate.
2. Grieg Seafood or any senior
management affiliated with the
company has not been finally
convicted in court on corruption.
governance and compliance
as integral components of
its oversight framework and
maintains tax management
practices in strict accordance with
national accounting principles
and laws.
compliance with competition laws
through our Code of Conduct,
which all employees are obliged
to comprehend and comply with
through our Code of Conduct
Program.
2. Grieg Seafood or its senior
2. Grieg Seafood or its subsidiaries
has not been found violating of
tax laws.
management has not been finally
convicted on violating competition
laws.
to the UN Guiding Principles
on Business and Human Rights
(UNGP) and OECD Guidelines
for MNEs, and have established
an Human Rights Due Diligence
Process in line with the
Norwegian Transparency Act
where we have used the OECD
Guidelines in the implementation
of the law, and based our due
diligence process on the approach
of the UNGP.
2. There exists no signals that Grieg
Seafood has finally been found
in breach of labor law or human
rights.
NUCLEAR AND FOSSIL GAS RELATED ACTIVITIES
The disclosure requirement for Grieg Seafood’s exposure to nuclear and fossil gas related activities is provided in the table below.
ROW
NUCLEAR ENERGY RELATED ACTIVITIES
YES/NO
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel
cycle.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to
produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production, as well as their safety upgrades, using best available technologies.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety upgrades.
FOSSIL GAS RELATED ACTIVITIES
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that
produce electricity using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool
and power generation facilities using fossil gaseous fuels.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
No
No
No
No
No
No
1
2
3
4
5
6
24
PART 02 - OUR OPERATIONAL RESULTS FIGURE 2.7
PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES
ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
ECONOMIC ACTIVITIES
A. TAXONOMY-ELIGIBLE ACTIVITIES
Substantial Contribution Criteria
DNSH Criteria (‘Does not Significantly Harm’)
Absolute
turnover
(mNOK)
Proportion
of turnover
%
Climate
change
mitigation %
Climate
change
adaptation %
Water and
marine
resources %
Circular
economy % Pollution %
Code
Biodiversity
and
ecosystems
%
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water and
marine
resources
Y/N
Circular
economy
Y/N
Pollution
Y/N
Biodiversity
and
ecosystems
Y/N
Minimum
safeguards
Y/N
Taxonomy
aligned
proportion
of total
turnover,
year N %
Category
(enabling
activity)
Category
(transitional
activity)
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
Acquisition and ownership of buildings
CCM 6.10
CCM 7.7
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
Acquisition and ownership of buildings
Turnover of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities) (A.2)
CCM 6.10
CCM 7.7
Total (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
Total (A+B)
FIGURE 2.8
PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED
WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
0
0
0
0
0
0
0
0
0
0%
100%
100%
100%
0%
0%
0%
0%
0%
0%
0%
0%
7 028
7 028
100%
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
0%
0%
0%
T
T
Substantial Contribution Criteria
DNSH Criteria (‘Does not Significantly Harm’)
ECONOMIC ACTIVITIES
A. TAXONOMY-ELIGIBLE ACTIVITIES
Absolute
CapEx
(mNOK)
Proportion
of CapEx %
Climate
change
mitigation %
Climate
change
adaptation %
Water and
marine
resources %
Circular
economy % Pollution %
Code
Biodiversity
and
ecosystems
%
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water and
marine
resources
Y/N
Circular
economy
Y/N
Pollution
Y/N
Biodiversity
and
ecosystems
Y/N
Minimum
safeguards
Y/N
A.1. CapEx of environmentally sustainable activities (Taxonomy-aligned)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
Acquisition and ownership of buildings
CCM 6.10
CCM 7.7
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
Acquisition and ownership of buildings
CapEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
CCM 6.10
CCM 7.7
Total (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
Total (A+B)
PART 02 - OUR OPERATIONAL RESULTS
0
0
0
0
6
611
191
808
808
0%
100%
100%
100%
0%
0%
0%
0%
40%
12%
53%
53%
722
1 530
47%
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
0%
0%
0%
T
T
25
Taxonomy
aligned
proportion
of total
turnover,
year N %
Category
(enabling
activity)
Category
(transitional
activity)
FIGURE 2.9
PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED
WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES
ECONOMIC ACTIVITIES
A. TAXONOMY-ELIGIBLE ACTIVITIES
Substantial Contribution Criteria
DNSH Criteria (‘Does not Significantly Harm’)
Absolute
OpEx
(mNOK)
Proportion
of OpEx %
Climate
change
mitigation %
Climate
change
adaptation %
Water and
marine
resources %
Circular
economy % Pollution %
Code
Biodiversity
and
ecosystems
%
Climate
change
mitigation
Y/N
Climate
change
adaptation
Y/N
Water and
marine
resources
Y/N
Circular
economy
Y/N
Pollution
Y/N
Biodiversity
and
ecosystems
Y/N
Minimum
safeguards
Y/N
Taxonomy
aligned
proportion
of total
turnover,
year N %
Category
(enabling
activity)
Category
(transitional
activity)
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
0%
0%
0%
T
T
A.1. OpEx of environmentally sustainable activities (Taxonomy-aligned)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
Acquisition and ownership of buildings
CCM 6.10
CCM 7.7
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities)
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
Sea and coastal freight water transport, vessels for port operations and
auxiliary activities
Acquisition and ownership of buildings
OpEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
CCM 6.10
CCM 7.7
Total (A.1+A.2)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
Total (A+B)
0
0
0
0
3
0
32
36
36
355
391
0%
100%
100%
100%
0%
0%
0%
1%
0%
8%
9%
9%
91%
100%
PART 02 - OUR OPERATIONAL RESULTS
26
GRIEG SEAFOOD
ROGALAND
Grieg Seafood Rogaland farms salmon in the county of Rogaland on the west
coast of Norway. In the region, we have seawater licenses with a maximum
allowed biomass (MAB) of 17 800 tonnes. We have smolt and post-smolt
facilities and also operate our own broodstock activity. We process and pack our
salmon at our own facility.
OPERATIONAL RESULTS
A total of 25 980 tonnes was harvested in 2023, a decrease of 8%
to reduce the number of sea lice treatments, resulting in 65% of
compared to the 28 387 tonnes harvested in 2022. Despite this
pens from which fish were harvested not receiving any treatment
decline, sales revenues amounted to NOK 2 305 million in 2023,
in 2023, compared to 54% in 2022. Notably, our efforts to ensure
an increase of 9% compared to 2022 (NOK 2 124 million). This
robust fish health have resulted in the elimination of antibiotics
increase was primarily driven by higher spot prices, with the
usage in Rogaland for several years. Read more about our post-
Nasdaq spot price averaging NOK 92.3 per kg i 2023 compared to
smolt results in “Our business strategy” in Part 1 of this report.
NOK 82.0 per kg in 2022. However, the sale of 17% of our volume
under fixed-price contracts coupled with quality downgrades,
However, the costs associated with reduced survival (cost
resulted in a decline in price achievement in 2023 to NOK 88.7
recognized as abnormal mortality in the income statement),
per kg, compared to NOK 74.8 per kg in 2022. Additionally, the
notably attributable to ISA, gill diseases, winter ulcers, and sea
share of superior quality fish decreased from 84% in 2022 to 79%
lice treatments, increased to NOK 56.6 million in 2023 (NOK 2.2
in 2023.
per kg), compared to NOK 33.6 million in 2022 (NOK 1.2 per kg).
The farming cost (the total cost of producing and harvesting our
Our freshwater production was good in 2023, with close to
fish) ended at NOK 60.4 per kg in 2023, up from NOK 48.2 per kg
eight million smolt transferred to the sea, with an average weight
in 2022. The industry experienced a general rise in costs in 2022,
of 460 grams. Notably, the freshwater survival rate from our own
in particular in feed prices, which has continued to impact the
facility increased to 94% in 2023, up from 93% in 2022.
farming cost until the generation of impacted fish is harvested.
Despite encountering challenges related to Infectious Salmon
risk related to ISA, increased the economic feed conversion
Anemia (ISA), winter ulcers, and gill disease throughout the
rate (eFCR, a measure of the feed utilization) from 1.38 in 2022
year, our underlying seawater production remained robust. Early
to 1.42 in 2023. The farming cost was additionally impacted by
harvest due to ISA impacted biomass growth, but the 12-month
harvesting from ISA-affected sites, which increased the cost of
rolling survival rate improved from 92% in 2022 to 94% in 2023.
handling fish, including well boat costs.
Additionally, reduced growth due to early harvest to minimize
To address these challenges, we have intensified efforts to
improve fish health and welfare, particularly focusing on the
Due to our continued focus on escape prevention, we did not
freshwater phase to ensure robust smolt. A vaccination program
have any escape incidents in 2023. We also strive to minimize
against ISA for all smolt released to sea has been initiated, along
with additional measures at our smolt facilities to mitigate ISA-
related risks. Furthermore, transferring larger and more robust
smolt to sea farms has facilitated improved biological control
and reduced disease impact. Our post-smolt results so far also
indicates a higher survival rate. Thanks to the implementation of
post-smolt and cleaner fish, including wrasse, we have managed
PART 02 - OUR OPERATIONAL RESULTS
our impact on local wildlife. Our operations did not harm any
mammals during the year. However, three bird got caught in
our nets, compared to four last year. We continue our efforts to
reduce our impact.
25 980
TONNES GWT HARVESTED
28.3
OPERATIONAL EBIT/KG (NOK)
27
As part of our Climate Action Plan to reduce our carbon
Aquaculture Stewardship Council (ASC) certification is an
emissions by 35% in 2030, we are connecting our sea farms to the
important objective, as we believe it provides our customers and
onshore power grid, thereby lowering our carbon emissions from
consumers with assurance that we are operating in a responsible
diesel consumption. In Rogaland, 53% of our farms are powered
manner and producing high-quality seafood certified to the
by onshore electricity. Due to challenges in connecting the rest
highest social and environmental standards. We aim to certify all
SUSTAINABILITY SCOREBOARD
of the farms, we have installed batteries to enable diesel-electric
sites in Rogaland according to ASC. We started the certification
PILLAR
KPI
TARGET
STATUS
2023
2022
2021
2020
2019
power generation at three sites in 2023. Read more about our
and audit process at the start of 2022, and had six of 11 eligible
work to reduce carbon emissions in Part 02 - Climate action.
sites ASC-certified by the end of 2023. This corresponds to 74% of
harvested volume for the year.
We are committed to maintaining a good working environment
and keeping our employees safe. In 2023, the total absence rate
for Rogaland was 3.9%, below the target of 4.5%. We monitor
and follow up absence in accordance with our procedures
and guidelines. Read more about how we work to secure our
employees well-being and labor rights in Part 02 - People.
FIGURE 2.10
RESULTS
NOK MILLION
Harvest (tonnes GWT)
Revenue (NOK million)
2019
2020
2021
2022
2023
25 217
23 043
26 670
28 387
25 980
1 538.9
1 263.1
1 430.9
2 123.7
2 305.2
Operational EBIT (NOK million)
568.2
292.3
242.0
754.6
736.4
Operational EBIT / kg (NOK)
Farming cost / kg (NOK)
22.5
35.9
12.7
42.1
9.1
44.6
26.6
48.2
28.3
60.4
FIGURE 2.11
OPERATIONAL EBIT AND HARVEST
Harvest (tonnes GWT)
Operational EBIT/kg (NOK)
)
T
W
G
S
E
N
N
O
T
(
T
S
E
V
R
A
H
30 000
25 000
20 000
15 000
10 000
5 000
0
30
25
20
15
10
5
0
2019
2020
2021
2022
2023
I
O
P
E
R
A
T
O
N
A
L
E
B
T
K
G
/
I
(
N
O
K
)
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
29 000 tonnes in 2023
Operational EBIT per kg (NOK)
Farming cost per kg (NOK)
Cost leader
ASC certification (# of sites)
All sites (11 eligible) by 2023
Survival rate in freshwater
Survival rate at sea
95% by 2023
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
No use of antibiotics
Use of hydrogen peroxide
(kg per tonne LWE) *
Minimize use of pharmaceutical
treatments
Sea lice treatments - in feed
(g per tonne LWE) *
Minimize use of pharmaceutical
treatments
Sea lice treatments - in bath
(g per tonne LWE) *
Minimize use of pharmaceutical
treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Dead marine mammals
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
Scope 1 + 2 location based
Scope 3
Minimize impact on wildlife
in 2023
Minimize impact on wildlife
in 2023
35% reduction (from 2018)
in total emissions by 2030
High quality product
93% superior share
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
PEOPLE
Employees
Absence rate
Below 4.5%
Lost time incident rate
**
Turnover rate
LOCAL
COMMUNITIES
Local procurement
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
25 980
28 387
26 670
23 043
25 217
28.3
60.4
6
94%
94%
26.6
48.2
5
93%
92%
9.1
44.6
0
94%
92%
12.7
42.1
0
95%
90%
22.5
35.9
0
93%
93%
56 638
33 553
30 804
63 664
26 127
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.58
7.21
11.94
0.00
1.61
3.74
0.00
0.03
0.13
0.05
0.63
0.02
0.00
0
3
0
0
4
0
0
13
0
0
20
0
0
2
0
295
272
332
403
392
5 636
5 289
5 676
7 641
8 200
79%
84%
81%
85%
75%
1.27
1.24
1.26
1.22
1.17
1.42
1.38
1.43
1.44
1.28
181
175
162
165
157
3.9%
5.6%
3.0%
3.0%
3.5%
32
25
15%
11%
42
n/a
9
n/a
15
n/a
41%
52%
60%
64%
64%
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available or applicable.
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
PART 02 - OUR OPERATIONAL RESULTS
28
FIGURE 2.12
SURVIVAL RATE AT SEA, ROLLING 12 MONTHS
FIGURE 2.13
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER IN 2023
FIGURE 2.14
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER (NUMBER OF FISH)
Target: 95%
95%
90%
85%
80%
75%
2019
2020
2021
2022
2023
We have also set targets for survival rates in fresh water. In the wild, only a small
percentage of fertilized eggs survive and become adults. That is our biological starting
point. Over the years, research has allowed us to improve the quality of breeding
process, the eggs and survival rates, but we still experience mortality especially in
the very early phase. We work systematically at the various stages in the lifecycle to
improve survival rates. These targets can be found in our fish health and fish welfare
policies. The calculation of survival rate at sea corresponds to the GSI indicator "Fish
Mortality" which is defined as "12 months rolling mortality = total # of mortalities in sea
last 12 months / (closing # of fish in sea + total # of mortalities in last 12 months + total
# of harvested fish in last 12 months + total # of culled fish in sea) x 100".
MAIN CAUSE
Diseases
Handling and/or
treatments
Non-infectious diseases
Other known
Unknown
Total
Abnormal seawater
mortality write-down
%
NUMBER OF FISH
TONNES OF FISH
459 423
1 595
106 015
4 626
18 959
309 343
898 366
430 081
48%
250
12
90
737
2 684
952
35%
500 000
400 000
300 000
200 000
100 000
0
2021
Diseases
Diseases
Treatments
Handling and/or treatments
Non-infectious diseases
Non-infectious diseases
Other known
Other known
Unknown
Unknown
2022
2023
The main causes of reduced survival in seawater are categorized according to a new standardized mortality classification scheme developed in 2023 by the Norwegian University of Life
Sciences (NMBU) together with industry leaders. In previous years, we have classified mortality by the main categories ”infectious and “non-infectious” with subcategories. Historical
data is reclassified according to the new standard.
We perform a daily count and registration of dead fish. Laboratory analysis are undertaken to establish the main cause of mortality. In some cases, the cause of mortality can be
difficult to establish due to various reasons such as weather- and environmental conditions, and the lack of diagnostic tools on site to identify causal agents.
Mortality caused by diseases in 2023 was mainly related to winter ulcers and complex gill disease (CGD). Gill infections are in most cases complex and multifactorial, and the primary
cause is unknown. Gill infection is a welfare issue, as well as being an important cause of mortality. In addition, handling and treatments that led to lesions and bacterial infections
(including winter ulcers) were also a main driver for reduced survival. In addition to being a welfare issue, winter ulcers can lead to increased mortality and reduced quality at harvest.
Our fish are vaccinated against the disease, however, high challenge pressure and presence of other strains or bacteria can also cause skin ulcers.
Site-specific information about treatments and notifiable diseases are publicly available at Barentswatch.
FIGURE 2.15
SEA LICE LEVELS (ADULT FEMALES)
2019
2020
2021
2022
2023
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
0.5 Limit of adult female sea lice
per fish per site
PART 02 - OUR OPERATIONAL RESULTS
29
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Our sites in Rogaland are located in Norwegian production area 2 (PO2), which has a yellow light under Norway’s “traffic light” system (“yellow - moderate sea lice density", the
current level of production capacity will be maintained). Sea lice counts are conducted by visual inspections, done by lifting a minimum of 20 salmon out of the water for each pen on a
weekly or biweekly basis, depending on the seawater temperature. The number of sea lice on each fish is recorded in our systems, and this information is used to estimate the overall
prevalence of sea lice in the population. The sea lice counts are calculated as the average number of adult female sea lice per month. Sea lice levels shall stay below the legal limit of
0.5 adult female per fish, or 0.2 during April and May when the wild salmon smolt migrate from the rivers and pass the fjords. On average, we did not exceed the sea lice limits in 2023.
We report sea lice levels and sea lice treatments to the Directorate of Fisheries on a weekly basis. This is publicly available information, please see Barentswatch.
FIGURE 2.16
USE OF COPPER
FIGURE 2.17
RESTORED ECOSYSTEMS UNDER FARMS
OPERATIONAL PRIORITIES
LOCAL COMMUNITIES
Copper-free antifouling
solutions on nets
We used one net with copper antifouling solutions
at one site in Rogaland in 2023
Remediated ecosystems under farms before a new
generation of fish was transferred to the farms in 2023
100% of
farms
We expect to harvest 28 000 tonnes in 2024, with an ambition to
We aim to be open and honest with local communities about
increase harvest to 35 000-40 000 by improving the utilization
our production methods, our successes, and our remaining
Restored to “very good” or “good” thresholds according to local regulations.
of our seawater capacity. The key to achieving this, is to reduce
challenges. We view it as our responsibility throughout all of our
Very poor
Test not yet taken (new sites)
time, reduce our impact and improve growth in sea in the
local apprentices and support aquaculture schools and training
production time in the sea, which we expect to result in improved
four farming regions to engage in constructive dialogue with
biological performance and a higher utilization of each site’s
all stakeholders and groups that are impacted by our activities.
maximum allowable biomass (MAB). Read more about how larger
We create jobs and opportunities in the rural areas where we
smolt (post smolt) will significantly reduce seawater production
operate, and we use local suppliers as often as we can. We hire
FIGURE 2.18
RESULTS OF B-TEST
Year
2023
2022
2021
Very good
73%
75%
83%
Good
18%
17%
17%
Poor
9%
8%
0%
0%
0%
0%
0%
0%
0%
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or copper from fish
nets. This impact should never be irreversible. Read more about our impact on nature here. Between each generation of fish, we allow the ecological system to rest and restore itself.
In Norway, all farms are required to conduct independent seabed tests (B-test) at peak biomass production/max load, and undertake regular independent tests in the area around the
farms (C-test). Local regulations impose fallowing periods after each generation to ensure the environment under and around the pen recover. The minimum fallowing period is at
least two months, and longer if seabed test results indicate that is needed. Only when a farm has reached the threshold of restoration, may we transfer a new generation of fish to the
site. If fallowing is not enough to improve seabed test results, additional measures, such as reducing production, is taken. In 2023, 91% of our sites received a very good or good score
on seabed tests compared to 92% in 2022. The results are based on last B-test taken for each site that is part of our ongoing operations, either at peak biomass production/max load,
or before restocking when the seabed has recovered. We have one site in Rogaland where the ecosystem takes longer to recover, and where we performed testing at peak biomass in
2022 and 2023. The site that received a poor score must fallow for longer. Results of the B-tests are publicly available information, please see The Directorate of Fisheries.
According to the Risk Report of Norwegian Fish Farming by the Institute of Marine Research, the risk of impact from organic waste from fish farming is low and the environmental
ecosystem condition is good in Rogaland (the salmon production area PO2). Grieg Seafood has partnered with other salmon farming companies in Rogaland to commission an
independent environmental monitoring program, to ensure that the combined organic emissions from all the farms do not significantly impact the fjords. The program monitors the
water quality and possible eutrophication in the Ryfylke fjord system. The results after a decade of monitoring show that the fjord system’s environmental condition is good.
FIGURE 2.19
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high
biodiversity value
Red list species impacted
100% of farms
Two broodstock farms, total water surface area
of 0.083km2
One species (2 birds)
We perform environmental and social impact assessment for all of our farms. The assessment also include presence of cauliflower corals. These assessments are also part of the ASC
certification process, which includes criteria to minimize environmental impact and preserve biodiversity. Two broodstock sites in Rogaland are located in Sandsfjorden, a "national
salmon fjord" category created by the Norwegian Parliament to protect wild salmon. These seawater farms were present prior to the establishment of the category, and became
subject to certain restrictions as a result. We do have sites in the proximity of land nature reserves, but we do not have any other sites in or adjacent to protected areas or areas of high
biodiversity value (areas defined as Special Areas of Conservation (SAC), Marine Protected Areas (MPA), High Conservation Value Areas (HCVA) or Federal Marine Protected Areas). For
the definition of protected areas and areas of high biodiversity value, we refer to the ASC Salmon Standard. All site locations are available on our website.
FIGURE 2.20
IUCN RED LIST- AND NATIONAL CONSERVATION LIST SPECIES
Critically endangered
Endangered
Vulnerable
Near threatened
Least concern
IUCN Red List
Artsdatabanken
10
6
13
17
45
28
47
22
940
296
Our impact assessments also include identification of species listed in the IUCN Red List and Norway’s national conservation list, Artsdatabanken, with habitats in areas where we
operate. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation status of plant and animal species,
and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the relative importance of these habitats from a management
perspective. Our assessments have not identified that our activities pose a threat to any endangered plants or animal species. We keep track of red listed species impacted in areas
affected by our operations as a part of the ASC-certification. In 2023, we had three incidents which involved two Black-headed gulls, which according to Norway’s national conservation
list is critically endangered, and one Mew gull, which according to Norway’s national conservation list is vulnerable. The Mew gull and one Black-headed gull have drowned. One Black-
headed gull was found entangled in the anti-bird net. We have changed our procedures to ensure we keep our nets tight to prevent similar incidents.
Each year we monitor beach areas in proximity to our active sites in Rogaland (the size of the beach areas varies and we do not keep track of this, only positioning in terms of
coordinates). This is done to ensure that the algae and seagrass vegetation and other species are healthy, and not negatively impacted by our farming operations. Algae and seagrass
can sequester carbon dioxide in their roots, and also provide nursery, refuge and foraging habitats for marine animals. In 2023, we conducted several assessments. The results showed
no significant impact from our farming operations. We continue to monitor beach areas each year to keep track of changes and will implement protective measures if negative impact
is detected.
operational focus area chapter in Part 1 of this report. In 2023,
facilities. We sponsor sports and cultural activities, and we
65% of fish harvested were from post-smolt. In 2023, the average
engage in monitoring and protection of the local environment.
weight of smolt transferred to sea was 460 grams. We aim to
We also provide a grievance mechanism for local communities
increase the average smolt weight to 1 kg in 2027.
on our regional website as well as a whistle blower channel.
This enable us to identify and prevent potential negative impact
Another tool that will improve biology and drive growth, is our
on local communities, such as pollution of local environment
Precision Farming strategy. Read more about Precision Farming
and violations of human rights. In 2023, we did not identify any
in our operational focus areas chapter in Part 1 of this report.
significant negative impact on local communities from our
operations.
We are well-positioned with land-based production, and aim to
add at least 4 500 tonnes by increasing our post-smolt capacity.
Our current freshwater facilities at Trosnavåg and Hognaland
have a production capacity of 1 200 tonnes smolt. We also have
a 33% shareholding in Tytlandsvik Aqua, with a current smolt
production capacity of 6 000 tonnes (where Grieg Seafood
Rogaland is entitled to 50% of the smolt). Tytlandsvik is exploring
additional capacity of 3 000 tonnes, possibly adding 1 500 tonnes
of smolt to Grieg Seafood Rogaland. In addition, we use two
closed-containment facilities in sea, FishGLOBE, to produce
post-smolt. These facilities have a total capacity of 900 tonnes.
Further, we have a 44% shareholding in Årdal Aqua, a land-based
facility with the same design as Tytlandsvik Aqua. Årdal Aqua is
expected to produce at least 4 500 tonnes of post-smolt annually
from 2025. Due to the introduction of a resource rent tax in 2023,
we have not had any strategic investments in Rogaland this year,
however, we have spent a total of NOK 77 million in maintenance
investments.
equal to 41% of total purchases, spent on goods and services purchased from local
suppliers in the county of Rogaland.
NOK 799 million
NOK 1.9 million
donated to local services and projects, all of which are pro bono. We support preserving
the coastal history of our region, positioning ourselves within the timeline of coastal
culture and the Norwegian way of life connected to the sea. Our contributions include
sponsoring the restoration of a local fishing boat and books on local history. We
support cultural events for children and young people, to make participation in cultural
activities affordable for those with few financial resources. In Stavanger, for instance,
we supported Childern’s Mablis, a family festival in the woods. We also support sports
clubs in the municipalities where we have farms.
NOK 16.9 million
in direct support from the Norwegian Aquaculture Fund to the municipalities where
we operate, based on the production fee of NOK 0.56/kg (gutted weight) for volume
harvested during the first half of 2023 and NOK 0.90/kg (gutted weight) for volume
harvested during the second half of 2023.
Learn more about our relationships with our local community on
our website,
PART 02 - OUR OPERATIONAL RESULTS
30
25 170
TONNES GWT HARVESTED
13.0
OPERATIONAL EBIT/KG (NOK)
GRIEG SEAFOOD
FINNMARK
Grieg Seafood Finnmark farms salmon in Troms and Finnmark, the
northernmost county in Norway. We have seawater licenses with a maximum
allowed biomass (MAB) of 27 000 tonnes, including green licenses which
are subject to stricter environmental standards. We also operate freshwater
facilities. In general, the salmon we harvest are processed and packed at our
local facility in Alta.
OPERATIONAL RESULTS
A total of 25 170 tonnes was harvested in 2023, a decrease of 30%
Seawater production has been significantly impacted by
compared to the 36 024 tonnes harvested in 2022. Sales revenues
biological challenges this year. Historically, Finnmark is a region
amounted to NOK 1 947 million, a decrease of 26% compared to
with lower seawater temperatures which, combined with low
NOK 2 629 million in 2022. The year-on-year reduction is related
interconnectivity between farming sites, helps to keep sea lice
to the lower harvest volume. The Nasdaq average spot price in
levels low. We use targeted preventive methods, such as sea
2023 was NOK 92.3 per kg, compared to NOK 82.0 per kg in 2022.
lice skirts, to ensure that the sea lice level remains low. Despite
Our price achievement in 2023 was NOK 77.3 per kg (NOK 73.0
the natural advantages and our preventive measures, we have
per kg in 2022). The price achieved was significantly depressed by
experienced an increase in sea lice pressure since the summer
downgrades, in addition to the sale of 15% of our volume under
of 2022, which has necessitated several treatments, resulting in
fixed-price contracts. The superior quality share decreased
reduced feeding and growth. We have however, managed to keep
from 86% in 2022 to 58% in 2023 due to impact from the parasite
the sea lice level stable and lower than last year as a result of
Spironucleus Salmonicida (Spiro) in addition to winter ulcers and
being able to perform sea lice treatments at an early stage.
string jellyfish.
Additionally, Spiro has continued to impact the seawater
Freshwater production at our own facility at Adamselv was good
production throughout the year, leading to early harvesting and
during the year. Throughout the year, we have performed regular
the culling of fish with sickness signs to protect fish welfare.
testing for Spiro, which was detected in fish from Adamselv
Towards the end of the year, we, together with several fish
in 2022. The source of the parasite is believed to be the water
farmers in Norway, experienced an increasing impact from string
intake to the facility. Water treatment equipment have been
jellyfish and winter ulcers. This has affected the biomass growth.
installed and disinfection measures have been implemented to
Measures to reduce the impact from winter ulcers include feed
significantly reduce future risks of Spiro in the freshwater facility.
composition and vaccination. We are also performing testing with
We also collaborate with research institutions to close knowledge
probiotic treatments before transferring fish to sea to increase
gaps related to Spiro. We have not had any new detections of
the robustness of the salmon. We also participate in several
Spiro at the freshwater facility in 2023. We transferred a total of
research projects across the industry to identify best practices
12.2 million smolt with an average weight of 210 grams to the
to combat these challenges. We are monitoring the situation
sea in 2023. The freshwater survival rate increased from 90%
continuously to safeguard the welfare of the fish. Nevertheless,
in 2022 to 95% in 2023. During the year, we have completed a
redesign of the freshwater facility at our jointly-owned Nordnorsk
Smolt, where we commenced production in the autumn.
our 12-month survival rate improved from 91% in 2022 to 92% in
2023, due to better survival of the new generation. We anticipate
Spiro to have an impact on the production until the generation is
completely harvested by Q2 2024.
PART 02 - OUR OPERATIONAL RESULTS
31
Spiro has also impacted our cost of reduced survival (cost
As part of our Climate Action Plan to reduce our carbon
recognized as abnormal mortality in the income statement) the
emissions by 35% in 2030, we have connected our feed barges
last years, which came to NOK 95.5 million in 2023 (NOK 3.8 per
to the onshore power grid. In Finnmark, 57% of our farms are
kg) and NOK 100.6 million in 2022 (NOK 2.8 per kg). The farming
connected to the onshore grid. For sites that are not suitable for
cost (the total cost of producing and harvesting our fish) ended
the provision of onshore power, we use diesel-electric batteries
SUSTAINABILITY SCOREBOARD
at NOK 64.4 per kg in 2023, up from NOK 47.3 per kg in 2022. In
to reduce carbon emissions. We have only one more remaining
PILLAR
KPI
TARGET
STATUS
2023
2022
2021
2020
2019
addition to reduced survival and early harvest of fish impacted by
barge without electrification or diesel-electric batteries left
Spiro, the farming cost was impacted by a general rise in cost.
in Finnmark. This means that 95% of all operational sites and
This applies in particular to feed, whose prices increased by
barges are reducing their annual fossil fuel emissions. Read
PROFIT &
INNOVATION
Harvest volume (tonnes GWT)
33 000 tonnes in 2023
Operational EBIT per kg (NOK)
close to 40% from 2021 to 2022. This impacted our farming cost
more about how we work to reduce our carbon emissions in Part
Farming cost per kg (NOK)
Cost leader
in 2023, when we have harvested fish impacted by the increases.
02 - Climate action.
Additionally, reduced growth due to biological challenges
increased our economic feed conversion rate (eFCR, a measure
We are committed to maintaining a good working environment
HEALTHY
OCEAN
ASC certification (# of sites)
All sites (18 eligible) by 2023
Survival rate in freshwater
of the feed utilization) from 1.40 in 2022 to 1.48 in 2023. Overall,
and keeping our employees safe. In 2023, the total absence
Survival rate at sea
95% by 2023
we are working to improve survival rates through both general
rate for Finnmark was 8.0%, against a target of 4.5%. We are
and targeted health and welfare measures. Good results from
monitoring and following up on absence in accordance with
vaccines and efforts to ensure robust fish health have eliminated
procedures and guidelines. Read more about how we work to
the need of antibiotics for several years. However, we did use the
secure our employees well-being and labor rights in Part 02 -
antibiotic Florfenicol in the beginning of the year to safeguard the
People.
welfare of fish at selected pens impacted by sores.
We have a continuous focus on escape prevention, as we regard
improving fish welfare, achieving a high survival rate and working
it as our responsibility to avoid interbreeding between our farmed
towards sustainable production. As a result of our efforts in the
salmon and local wild salmon should an escape occur. We had no
area, 17 out of 18 eligible sites were ASC certified at year end.
escapes in 2023. We are also working on measures to minimize
This is equivalent to 74% of harvested volume for the year. New
our impact on local wildlife. No birds and no mammals got
sites must reach peak biomass to be considered for certification.
As in all our regions, Grieg Seafood Finnmark focuses on
caught in our nets in 2023.
FIGURE 2.21
RESULTS
FINNMARK
Harvest (tonnes GWT)
Revenue (NOK million)
2019
2020
2021
2022
2023
32 362
26 919
34 484
36 024
25 170
1 815.3
1 313.5
1 756.3
2 629.2
1 946.6
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
No use of antibiotics
Use of hydrogen peroxide
(kg per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in feed
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in bath
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Dead marine mammals
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
Scope 1 + 2 location based
Scope 3
Minimize impact on wildlife
in 2023
Minimize impact on wildlife
in 2023
35% reduction (from 2018)
in total emissions by 2030
Operational EBIT (NOK million)
580.2
127.4
250.5
926.1
326.6
High quality product
93% superior share
Operational EBIT / kg (NOK)
Farming cost / kg (NOK)
17.9
37.7
4.7
44.1
7.3
43.7
25.7
47.3
13.0
64.4
FIGURE 2.22
OPERATIONAL EBIT AND HARVEST
Harvest (tonnes GWT)
Operational EBIT/kg (NOK)
)
T
W
G
S
E
N
N
O
T
(
T
S
E
V
R
A
H
40 000
35 000
30 000
25 000
20 000
15 000
10 000
5 000
0
30
25
20
15
10
5
0
2019
2020
2021
2022
2023
I
O
P
E
R
A
T
O
N
A
L
E
B
T
K
G
/
I
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
PEOPLE
Employees
Absence rate
Below 4.5%
Lost time incident rate
**
Turnover rate
LOCAL
COMMUNITIES
Local procurement
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available.
(
N
O
K
)
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
25 170
36 024
34 484
26 919
32 362
13.0
64.4
17
95%
92%
25.7
47.3
17
90%
91%
7.3
43.7
18
95%
95%
4.7
44.1
15
89%
92%
17.9
37.7
10
87%
96%
95 525
100 567
53 133
37 495
15 055
2.63
6.77
5.98
0.00
0.00
7.68
6.54
2.36
3.62
0.00
0.18
0.07
0.14
0.14
0.10
0.74
0.73
0.34
0.82
0.21
0
0
0
1 (2 878)
1 (4 352)
20
0
8
0
0
6
0
0
2
0
241
151
166
182
169
4 997
3 774
4 492
5 973
5 330
58%
86%
82%
69%
86%
1.26
1.23
1.21
1.20
1.14
1.48
1.40
1.34
1.35
1.21
300
283
262
257
256
8.0%
9.7%
8.7%
5.5%
4.9%
22
17%
21
16%
22
n/a
28
n/a
22
n/a
28%
28%
45%
60%
66%
PART 02 - OUR OPERATIONAL RESULTS
32
FIGURE 2.23
SURVIVAL RATE AT SEA, ROLLING 12 MONTHS
FIGURE 2.24
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER IN 2023
FIGURE 2.25
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER (NUMBER OF FISH)
100%
95%
90%
85%
80%
75%
Target: 95%
MAIN CAUSE
Diseases
Environmental
Handling and/or
treatments
Non-infectious diseases
Predators
Smolt related
Other known
Unknown
Total
Abnormal seawater
mortality write-down
%
NUMBER OF FISH
TONNES OF FISH
856 485
80 526
28 412
348
667
119 338
419
842 848
1 929 043
1 183 970
61%
1 726
29
73
1
1
25
1
1 538
3 395
1 698
50%
2019
2020
2021
2022
2023
We have also set targets for survival rates in fresh water. In the wild, only a small percentage of fertilized eggs survive and
become adults. That is our biological starting point. Over the years, research has allowed us to improve the quality of breeding
process, the eggs and survival rates, but we still experience mortality especially in the very early phase. We work systematically
at the various stages in the lifecycle to improve survival rates.
These targets can be found in our fish health and fish welfare policies. The calculation of survival rate at sea corresponds
to the GSI indicator "Fish Mortality" which is defined as "12 months rolling mortality = total # of mortalities in sea last
12 months / (closing # of fish in sea + total # of mortalities in last 12 months + total # of harvested fish in last 12 months +
total # of culled fish in sea) x 100".
800 000
600 000
400 000
200 000
0
2021
Diseases
Smolt related
Treatments
Diseases
Predators
Unknown
Other known
2022
2023
Non-infectious diseases
Handling and/or treatments
Smolt related
Predators
Non-infectious diseases
Other known
Unknown
The main causes of reduced survival in seawater are categorized according to a standardized mortality classification scheme developed by the Norwegian University of Life Sciences
(NMBU) together with industry leaders. In previous years, we have classified mortality by the main categories ”infectious and “non-infectious” with subcategories. Historical data is
reclassified according to the new standard.
We perform a daily count and registration of dead fish. Laboratory analysis are undertaken to establish the main cause of mortality. In some cases, the cause of mortality can be
difficult to establish due to various reasons such as weather- and environmental conditions, and the lack of diagnostic tools on site to identify causal agents .
Mortality caused by lesions from string jelly fish encounters, treatments and after effects from parasitic infestations were the main drivers for reduced survival. Diseases include
Spironucleus salmonicida and winter ulcers, a bacterial infection. In addition to being a welfare issue, winter ulcers can lead to increased mortality and reduced quality at harvest.
Our fish are vaccinated against the disease, however, high challenge pressure and presence of other strains or bacterias can also cause skin ulcers. We have used antibiotics during
the year to treat our fish from winter ulcers. The parasite Spironucleus salmonicida (Spiro) is a rare parasite that can lead to high mortality. In 2023, we culled fish showing signs of ill
health from the parasite Spiro. According to the standardized classification scheme, mortality does not include culling of fish.
Site-specific information about treatments and notifiable diseases are publicly available at Barentswatch.
FIGURE 2.26
SEA LICE LEVELS (ADULT FEMALES)
2019
2020
2021
2022
2023
0.5 Limit of adult female sea lice per fish per site
0.25 Limit of adult female sea lice per fish per site on green licenses
0.2 Limit when wild salmon smolt migrate from the rivers and pass the salmon farms
0.5
0.4
0.3
0.2
0.1
0.0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
The sea lice counts are calculated as the average number of adult female sea lice per month. Sea lice levels shall stay below the legal limit of 0.5 adult female per fish. At the green
licenses in Finnmark, the limit is 0.25 adult female sea lice per fish, while during April and June, when wild salmon smolt migrate from the rivers and pass the salmon farms, the limit
is 0.2 adult female sea lice per fish. Sea lice counts are conducted by visual inspections, done by lifting a minimum of 20 salmon out of the water for each pen on a weekly or biweekly
basis, depending on the seawater temperature. The number of sea lice on each fish is recorded in our systems, and this information is used to estimate the overall prevalence of sea
lice in the population. On average, we did not exceed the sea lice limits in 2023. We report sea lice levels and sea lice treatments to the Directorate of Fisheries on a weekly basis. This
is publicly available information, please see Barentswatch.
PART 02 - OUR OPERATIONAL RESULTS
33
FIGURE 2.27
USE OF COPPER
FIGURE 2.28
RESTORED ECOSYSTEMS UNDER FARMS
OPERATIONAL PRIORITIES
LOCAL COMMUNITIES
Copper-free antifouling
solutions on nets
We used two nets with copper antifouling
solutions at one site in Finnmark in 2023
Remediated ecosystems under farms before a new
generation of fish was transferred to the farms in 2023
100% of
farms
Restored to “very good” or “good” thresholds according to local regulations.
FIGURE 2.29
RESULTS OF B-TEST
Year
2023
2022
2021
Very good
Good
86%
62%
43%
14%
33%
10%
Poor
0%
0%
19%
Very poor
Sites with hard seabed (do
not get a score)
Test not yet taken (new sites)
0%
5%
5%
0%
0%
14%
0%
0%
10%
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or copper from fish
nets. This impact should never be irreversible. Read more about our impact on nature here. Between each generation of fish, we allow the ecological system to rest and restore itself.
In Norway, all farms are required to conduct independent seabed tests (B-test) at peak biomass production/max load, and undertake regular independent tests in the area around
the farms (C-test). Local regulations impose fallowing periods after each generation to ensure the environment under and around the pen recover. The minimum fallowing period is
at least two months, and longer if seabed test results indicate that is needed. Only when a farm has reached the threshold of restoration, may we transfer a new generation of fish to
the site. If fallowing is not enough to improve seabed test results, additional measures, such as reducing production, is taken. 100% of our sites received a very good or good score
on seabed tests in 2023, up from 95% in 2022. The results are based on last B-test taken for each site that is part of our ongoing operations, either at peak biomass production/max
load, or before restocking when the seabed has recovered. Longer fallowing periods are in place for sites with poor scores, and a new generation will not be stocked until the impact
is reversed and the sites have met the regulated restoration thresholds. Access to new sites will also reduce the organic impact. In addition, we are conducting digital analyses of
the marine conditions at sites to understand how the farms can hit the currents in the most optimal way, which reduces the organic impact. We are subsequently working with local
authorities to adjust the farms accordingly. Results of the B-tests are publicly available information, please see The Directorate of Fisheries.
According to the Risk Report on Norwegian Fish Farming by the Institute of Marine Research, the risk of impact from organic waste from fish farming in Finnmark (the salmon
production area PO12) is low and the environmental ecosystem condition is good. An environmental study of the organic impact of fish farming in the Alta fjord, published in 2017,
showed low impact on the fjord system.
FIGURE 2.30
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high biodiversity value
Red list species impacted
100% of farms
One harvest site, total area of 0.004 km2 of the water surface
0
We perform environmental and social impact assessment for all of our farms. Such assessments are also part of the ASC certification process, which includes criteria to minimize
environmental impact and preserve biodiversity. Our harvesting plant in Finnmark, where we have the fish ready to be harvested in one seawater pen, is located in Altafjorden, a
"national salmon fjord" category created by the Norwegian Parliament to protect wild salmon. The harvesting plant was present prior to the establishment of the category, and became
subject to certain restrictions as a result. We do have sites in the proximity of land nature reserves, but we do not have any other sites in or adjacent to protected areas or areas of high
biodiversity value (areas defined as Special Areas of Conservation (SAC), Marine Protected Areas (MPA), High Conservation Value Areas (HCVA) or Federal Marine Protected Areas). For
the definition of protected areas and areas of high biodiversity value, we refer to the ASC Salmon Standard. All site locations are available on our website.
FIGURE 2.31
IUCN RED LIST- AND NATIONAL CONSERVATION LIST SPECIES
Critically endangered
Endangered
Vulnerable
Near threatened
Least concern
IUCN Red List
Artsdatabanken
10
6
13
10
45
22
47
24
940
294
Our impact assessments also include identification of species listed in the IUCN Red List and Norway’s national conservation list, Artsdatabanken, with habitats in areas where we
operate. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation status of plant and animal species,
and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the relative importance of these habitats from a management
perspective. Our assessments have not identified that our activities pose a threat to any endangered plants or animal species. We keep track of red listed species impacted in areas
affected by our operations as a part of the ASC certification.
As a part of our commitment to co-existence with wild salmon, the Alta river (total length of 47 km) and the Repparfjord river (total length of 100 km) in Finnmark are monitored
in collaboration with the Norwegian Institute for Nature Research, the management of the Alta rivers, and the West Finnmark Hunting and Fishing Association. The objective is to
investigate the impact of escaped farmed salmon from recreational fishing, and to evaluate the need for enhanced protective measures. In 2023, 485 shell samples was submitted from
the Alta river, whereas no samples was identified as escaped farmed salmon. In the Repparfjord river, one (0.2%) out of 547 shell samples submitted was identified as farmed salmon.
Read more about these projects here.
Grieg Seafood Finnmark targets a harvest volume of 27 000
tonnes in 2024, with an ambition to increase harvest to
40 000-45 000 by improving the utilization of our seawater
capacity. The key to achieving this is to optimize our existing
site structure, obtaining new sites and reducing production
time at sea, which we expect to result in improved biological
performance and a higher utilization of each site’s MAB. We
currently farm smolt at our own facility in Adamselv and at
Nordnorsk Smolt, in which we have a 50% shareholding. We
are targeting a capacity increase of 3 000 tonnes of post-smolt
at Adamselv. The construction of the new post-smolt unit in
Adamselv commenced at the end of the year. Larger smolt will
significantly reduce seawater production time, avoiding two
winters at sea, while also providing increased flexibility in timing
their transfer to seawater, as larger fish is more robust. Shorter
time in sea will also decrease the fishes’ exposure to issues
such as winter ulcers, sea lice and other biological challenges.
Flexibility is a requirement to achieve better utilization of our
capacity, and we are also continuously looking for opportunities
to secure access to new sites.
In 2023, we spent NOK 141 million in growth investments,
mainly related to the UV water treatment system at our current
freshwater facility in and construction start-up of the new
post-smolt unit in Adamselv, in addition to NOK 169 million in
maintenance investments.
We aim to be open and honest with local communities about
our production methods, our successes, and our remaining
challenges. We view it as our responsibility throughout all of our
four farming regions to engage in constructive dialogue with
all stakeholders and groups that are impacted by our activities.
We create jobs and opportunities in the rural areas where we
operate, and we use local suppliers as often as we can. We hire
local apprentices and support aquaculture schools and training
facilities. We sponsor sports and cultural activities, and we
engage in monitoring and protection of the local environment.
We also provide a grievance mechanism for local communities
on our website. This enable us to identify and prevent potential
negative impact on local communities This enable us to identify
and prevent potential negative impact on local communities, such
as pollution of local environment and violations of human rights.
In 2023, we did not identify any significant negative impact on
local communities from our operations.
Finnmark has been home to the Sami people for millennia.
We recognize that the Sami people have special rights, as
acknowledged in the United Nations Declaration on the Rights
of Indigenous Peoples (UNDRIP), and take particular care to
avoid infringing them. We are in a process to understand how
we can advance the Same culture in Finnmark. We continue our
close dialogue with the Sami people and we did not identify any
violations of their rights caused by our operations in 2023.
NOK 585 million
equal to 28% of total purchases, spent on goods and services purchased from local
suppliers in the county of Troms and Finnmark.
NOK 2.7 million
donated to local services and infrastructure projects, all of which are pro
bono. Amongst other clubs and events, we support the local sports club Bossekopp
and cultural festivals like Nordkapp Film Festival. Bossekopp is located in Alta, where
we have our local administration office and our harvesting plant. The Nordkapp Film
Festival is a small and intimate festival located in Honningsvåg. The Nordkapp Film
Festival is an important meeting place for the northern Norwegian film industry. We
also sponsored Finnmarksløpet – the longest dog sled race in Europe. The 1 200 km
race starts in Alta, with the course going all the way to the Russian border and back
again. Competitors must tackle challenging terrain and harsh winter conditions.
NOK 18.1 million
in direct support from the Norwegian Aquaculture Fund to the municipalities where
we operate, based on the production fee of NOK 0.56/kg (gutted weight) for volume
harvested during the first half of 2023 and NOK 0.90/kg (gutted weight) for volume
harvested during the second half of 2023.
Learn more about our relationships with our local community on
our website,
PART 02 - OUR OPERATIONAL RESULTS
34
17 682
TONNES GWT HARVESTED
-5.3
OPERATIONAL EBIT/KG (NOK)
GRIEG SEAFOOD
BRITISH COLUMBIA
Grieg Seafood BC Ltd farms salmon on the east and west sides of Vancouver
Island, north of Vancouver. The company's operations includes land-based
production of smolt, broodstock and seawater production. We process our BC
salmon externally.
OPERATIONAL RESULTS
A total of 17 682 tonnes was harvested in 2023, 13% lower than
means to manage diseases, such as vaccines and an adapted
in 2022 (20 286 tonnes). Harvesting volumes vary every other
diet. Infrastructure such as the barrier system, might also aid in
year regardless of the underlying biological performance, due to
reducing disease transmission.
an imbalance in the number of farms and maximum allowable
biomass (MAB) in the different production areas on the East and
BC has low sea lice levels during the important out-migration
West Coast of Vancouver Island. Sales revenues for the year
period (when the juvenile wild salmon pass our farms on
amounted to NOK 1 468 million, a decrease of 12% compared to
their way from the rivers to the ocean). However, the region
NOK 1 665 million in 2022. According to Urner Barry, the average
is influenced by sea lice pressure each autumn, during the
spot price (farm-raised salmon Seattle West Coast, fresh, whole
in-migration period when adult wild salmon pass our farms
fish) was NOK 84.7 per kg in 2023, compared to NOK 84.1 per
on their way back to the rivers to spawn. Sea lice are then
kg in 2022. Our price achievement was NOK 83.0 per kg in 2023,
transferred from the wild salmon to the farmed salmon, with
compared to NOK 82.1 per kg in 2022. The price achievement was
risk of multiplication within the farms. In BC, unlike Norway, the
positively impacted by an increased share of superior quality fish,
wild salmon population greatly outnumbers the farmed salmon
which improved from 85% in 2022 to 90% in 2023.
population. Our barrier system have shown potential to improve
sea lice control significantly. When additional measures are
The freshwater production has experienced reduced survival
needed, we carry out the type of treatment most appropriate to
due to technical issues which has impacted the number of
the biological situation. During 2023, medicinal sea lice treatment
smolt transferred to sea this year. The freshwater survival rate
with hydrogen peroxide and in-feed treatments were used to
decreased from 84% in 2022 to 81% in 2023. We have added
reduce and maintain a stable sea lice level. We aim to reduce the
additional expertise at the hatchery to address the production
use of medical sea lice treatments through a combination of a
issues.
barrier system between the farmed salmon and the environment
and use of the latest mechanical sea lice removal tool.
Seawater production was stable in 2023, and the 12-month
survival rate remained unchanged from 2022 to 2023 at 91%.
The cost of reduced survival (cost recognized as abnormal
Despite seasonal challenges related to sea lice and events of
mortality in the income statement) was NOK 142.7 million in
low dissolved oxygen, we managed to stabilize survival due to
2023 (NOK 8.1 or CAD 1.0 per kg), compared to NOK 90.7 million
treatments and our semi-closed technology solution. Mortality
in 2022 (NOK 4.5 or CAD 0.6 per kg). The cost was significantly
related to algal blooms has been gradually reduced over the
impacted by reduced survival at the freshwater stage. The
last year due to our efforts relating to algae mitigation, digital
monitoring and aeration systems, and came to 1.1% in 2023.
We are constantly working to reduce the use of antibiotics. In
2023, the antibiotic Florfenicol was used to treat Yellow mouth,
to safeguard the welfare of the fish. Our use of antibiotics has
historically been too high, and we are pursuing non-therapeutic
farming cost (the total cost of producing and harvesting our
fish) increased from CAD 9.1 per kg (NOK 68.8) in 2022 to CAD
11.2 per kg (NOK 88.4) in 2023. The increase is mainly related to
cost inflation on feed and other input factors during 2022, which
has continued to impact the farming cost until the generation of
impacted fish is harvested, in addition to the increased cost of
reduced survival.
PART 02 - OUR OPERATIONAL RESULTS
35
In BC, the wild salmon are Pacific salmon species which cannot
As part of our Climate Action Plan to reduce our carbon
interbreed with our Atlantic salmon. Unfortunately, we had two
emissions by 35% in 2030, we exchanged our compressors
escape incidents from our sea farms in 2023, where the first
with flow technology, reducing our compressor energy usage
incident was one fish lost to the ocean during a transfer from
and thereby our diesel consumption. It is estimated that the
the pen to the broodstock transport vessel. The fish was not
flowpressors will reduce annual carbon emissions by 3 000 tCO2e
SUSTAINABILITY SCOREBOARD
recaptured. The second incident occurred during a transfer
per year. Read more about how we are working to reduce our
PILLAR
KPI
TARGET
STATUS
2023
2022
2021
2020
2019
of fish between pens, where the offload pipes were wrongly
carbon emissions in Part 02 - Climate action.
positioned, and approximately 300 fish were offloaded to the
walkway. Immediate corrective action was taken to improve our
We are committed to maintaining a good working environment
procedures to prevent this type of incidents from happening
and keeping our employees safe. In 2023, the total absence rate
again. We also continue our efforts to minimize our impact on
for BC was 3.9%, below the target of 4.5%. We are monitoring
other local wildlife. In 2023, no mammals got caught in our nets,
and following up on absence in accordance with procedures
but unfortunately, five birds got stuck in our nets and under
and guidelines. Read more about how we work to secure our
PROFIT &
INNOVATION
HEALTHY
OCEAN
Harvest volume (tonnes GWT)
20 000 tonnes in 2023
Operational EBIT / kg (NOK)
Farming cost per kg (CAD)
Cost leader
ASC certification (# of sites)
All sites (11 eligible) by 2023
Survival rate in freshwater
walkways. Causes of death are accidental drowning and net
employees well-being and labor rights in Part 02 - People.
Survival rate at sea
95% by 2023
entanglement. We have changed our procedures to ensure we
keep our nets tight and conduct regular inspections beneath our
Obtaining ASC certification is an important signal that our salmon
walkways to avoid similar incidents.
is a responsible choice, as ASC has strict requirements with
respect to minimizing fish farms’ impact on the environment
and supporting local communities. At the end of 2023, all of our
11 eligible sites were ASC certified (corresponding to 100% of
harvested volume for the year).
FIGURE 2.32
RESULTS
BRITISH COLUMBIA
Harvest (tonnes GWT)
Revenue (NOK million)
Operational EBIT (NOK million)
Operational EBIT / kg (NOK)
Farming cost / kg (NOK)
Farming cost / kg (CAD)
2019
2020
2021
2022
2023
14 120
21 181
14 448
20 286
17 682
861.4
1 178.9
1 023.5
1 665.1
1 468.3
73.3
5.2
55.3
8.3
-7.4
-0.4
56.0
8.0
150.2
270.4
-93.9
10.4
60.4
8.8
13.3
68.8
9.1
-5.3
88.4
11.2
FIGURE 2.33
OPERATIONAL EBIT AND HARVEST
Harvest (tonnes GWT)
Operational EBIT/kg (NOK)
)
T
W
G
S
E
N
N
O
T
(
T
S
E
V
R
A
H
25 000
20 000
15 000
10 000
5 000
0
20
15
10
5
0
(5)
(10)
2019
2020
2021
2022
2023
I
O
P
E
R
A
T
O
N
A
L
E
B
T
K
G
I
/
(
N
O
K
)
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
17 682
20 286
14 448
21 181
14 120
-5.3
11.2
11
81%
91%
13.3
10.4
-0.4
9.1
7
84%
91%
8.8
12
85%
92%
8.0
11
78%
90%
5.2
8.3
n/a
63%
88%
142 668
90 728
17 617
66 082
73 327
32.61
34.75
41.67
62.32
87.00
17.38
12.83
35.66
46.62
6.01
0.27
0.17
0.30
0.22
0.52
0.00
0.00
0.00
0.00
0.00
2 (301)
5
0
0
6
0
2 (4)
8
1
0
12
1
0
14
0
677
741
1 091
769
1 101
2 799
2 439
4 025
3 276
5 411
90%
85%
87%
86%
86%
1.19
1.21
1.18
1.23
1.25
1.32
1.38
1.27
1.43
1.41
153
157
176
174
171
3.9%
6.4%
5.6%
6.8%
2.0%
8
9
27%
40%
6
n/a
36
n/a
35
n/a
79%
86%
84%
83%
83%
Cost of reduced survival
(NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
No use of antibiotics
Use of hydrogen peroxide
(kg per tonne LWE) */ **
Minimize use of
pharmaceutical treatments
Sea lice treatments - in feed
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Sea lice treatments - in bath
(g per tonne LWE) *
Minimize use of
pharmaceutical treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Dead marine mammals
SUSTAINABLE
FOOD
Carbon emissions
(kgCO2e per tonne GWT)
Scope 1 + 2 location based
Scope 3
Minimize impact on wildlife
in 2023
Minimize impact on wildlife
in 2023
35% reduction (from 2018)
in total emissions by 2030
High quality product
93% superior share
Biological feed conversion ratio
(bFCR)
Economic feed conversion ratio
(eFCR)
PEOPLE
Employees
Absence rate
Below 4.5%
Lost time incident rate
***
Turnover rate
LOCAL
COMMUNITIES
Local procurement
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** As of 01.01.2021, the Government of Canada - Department of Fisheries and Oceans Canada (DFO) changed the calculation formula for the API of hydrogen peroxide from Paramove
50 from 1 L (Paramove 50) * 1.15 (density) * 0.45 (concentration) = 1 kg H2O2 to 1 L (Paramove 50) * 1.19 (density) * 0.49 (concentration) = 1 kg H2O2, which corresponds to the method
used in Norway. Previous years (2019 - 2020) have not been recalculated.
*** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available.
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
PART 02 - OUR OPERATIONAL RESULTS
36
FIGURE 2.34
SURVIVAL RATE AT SEA, ROLLING 12 MONTHS
FIGURE 2.35
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER IN 2023
FIGURE 2.37
SEA LICE LEVELS (MOTILE SEA LICE )
8.0
2019
2020
2021
2022
2023
95%
90%
85%
80%
75%
Target: 95%
MAIN CAUSE
NUMBER OF FISH
TONNES OF FISH
Diseases
Environmental
Handling and/or
treatments
Non-infectious diseases
Predators
Smolt related
Other known
Unknown
Total
Abnormal seawater
mortality write-down
%
183 341
189 278
201 317
17 458
28 542
5 158
2 643
335 634
963 371
320 093
33%
304
619
547
30
55
1
9
625
2 191
1 151
53%
2019
2020
2021
2022
2023
We have also set targets for survival rates in fresh water. In the wild, only a small
percentage of fertilized eggs survive and become adults. That is our biological starting
point. Over the years, research has allowed us to improve the quality of breeding
process, the eggs and survival rates, but we still experience mortality especially in
the very early phase. We work systematically at the various stages in the lifecycle to
improve survival rates. These targets can be found in our fish health and fish welfare
policies. The calculation of survival rate at sea corresponds to the GSI indicator "Fish
Mortality" which is defined as "12 months rolling mortality = total # of mortalities in sea
last 12 months / (closing # of fish in sea + total # of mortalities in last 12 months + total
# of harvested fish in last 12 months + total # of culled fish in sea) x 100".
FIGURE 2.36
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER (NUMBER OF FISH)
3 Limit of motile sea lice per fish per site (March to June)
6.0
4.0
2.0
0.0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
The sea lice counts are calculated as the average number of motile sea lice per salmon. The limit as defined by the authorities is three motile sea lice per salmon in the period from
March to June during the out-migration period, recognized as a vulnerable time for wild salmon migrating out to sea. Sea lice counts are conducted by visual inspections, done by
lifting a minimum of 20 salmon out of the water for three pens on a weekly basis. The number of sea lice on each fish is recorded in our systems, and this information is used to
estimate the overall prevalence of sea lice in the population. On average, we did not exceed the sea lice limits in 2023.
500 000
400 000
300 000
200 000
100 000
0
2021
Diseases
Predators
Environmental
Diseases
Non-infectious diseases
Other known
Smolt related
2022
2023
Treatments
Other known
Environmental
Predators
Unknown
Non-infectious diseases
Handling and/or treatments
Smolt related
Unknown
The main causes of reduced survival in seawater are categorized according to a standardized mortality classification scheme developed by the Norwegian University of Life Sciences
(NMBU) together with industry leaders. In previous years, we have classified mortality by the main categories ”infectious and “non-infectious” with subcategories. Historical data is
reclassified according to the new standard.
We perform a daily count and registration of dead fish. We undertake routine screening to determine the cause of mortality. In some cases, the cause of mortality can be difficult to
establish due to various reasons such as weather- and environmental conditions, and the lack of diagnostic tools on site to identify causal agents.
The main causes for reduced survival in 2023 were complications post handling and sea lice treatments, in addition to bacterial infections and gill infections. Gill infections are in most
cases complex and multifactorial, and the primary cause is unknown. Gill infections is a welfare issue, as well as being an important cause of mortality. Diseases include Yellow mouth
disease. Yellow mouth diseases typically occur during the first few weeks after transfer to the sea, and is controlled through therapeutic treatments using antibiotics. Algae blooms
and low oxygen levels explains the environmental causes.
PART 02 - OUR OPERATIONAL RESULTS
37
FIGURE 2.38
USE OF COPPER
FIGURE 2.39
RESTORED ECOSYSTEMS UNDER FARMS
OPERATIONAL PRIORITIES
Grieg Seafood BC targets a harvest volume of 15 000 tonnes in
The United Nations Declarations on the Rights of Indigenous
2024. We aim to increase the volume harvested to 30 000-35
Peoples (UNDRIP), giving Indigenous peoples rights in their own
000 tonnes by both developing current sites to utilize more of
traditional territory, is under implementation in BC. This is a
our seawater capacity and developing new sites. Key initiatives
process of reconciliation between the government, businesses
to achieve our objective include the implementation of barrier
and First Nations. The vast majority of our production in BC
systems to provide better biological control and higher survival
is operated under agreements with First Nations and we are
rates. We also seek to develop sites that are well suited for
pursuing agreements with others. These relationships are
salmon farming, and phase out older and smaller sites with more
very important to us. The Truth & Reconciliation Commission:
challenging biological conditions.
Call to Action #92 provides us with guidance on our role in the
reconciliation process. We strive to operate with respect for the
Access to high-quality smolt is also key to ensuring sustainable
culture of our First Nations partners in every way, to deepen our
production growth. Last year, we completed the expansion of
our Gold River smolt facility, with smolt capacity increasing
understanding and to provide shared opportunities. Read more
about our journey of reconciliation in BC here.
from 500 to 800 tonnes. Another key priority to increase survival
rates and harvest volume, is the use of digital monitoring and
By 2025, the Canadian Federal Government aims to have created
prediction technology. Harmful Algae Blooms (HAB) and low
a responsible plan to transition into better and more sustainable
oxygen events represent significant biological risks in BC.
practices in British Columbia, in order to reduce interactions
Mortality related to algae blooms has been reduced the last
with wild salmon. Grieg Seafood welcomes the transition process
years due to our successful efforts in the field of algae mitigation,
and the transition framework published. We have established
digital monitoring and aeration systems. Algae movements and
a constructive dialogue with the federal Minister of Fisheries,
oxygen levels are continuously monitored and analyzed using
Oceans and the Canadian Coast Guard, The Honourable Diane
high-grade real-time in-pen sensors, and machine learning with
Lebouthillier and her Department about finding a good solution
predictive environmental software. We have installed aeration
going forward. We also continue to work collaboratively with our
systems to enable feeding also during challenging situations,
which increases the survival during these periods. In combination
First Nation partners, government and local communities on
innovation and modernization towards a sensible transition plan.
with HAB and oxygen monitoring tools, we are also using the
CO2L Flow barrier systems on some sites, which we expect to
contribute to improved oxygen levels and a reduction in sea lice
treatments. In 2023, we spent approximately NOK 29 million in
growth investments, mainly related to the barrier systems and
NOK 105 million in regular maintenance investments.
Copper-free antifouling
solutions on nets
100%
Remediated ecosystems under farms before a new
generation of fish was transferred to the farms in 2023
100% of farms
We did not use copper antifouling solutions on our nets in
BC in 2023.
Threshold on hard bottom according to local regulations: Beggiatoa species, similar bacteria or marine worms does
not cover 10% or more of any four segments of substrate. Threshold on soft bottom according to local regulations:
Sulphide does not exceed 1 300 µM at 30 m and 700 µM at 125 m away from the cage edge along two transects.
FIGURE 2.40
% OF SITES THAT ARE RESTORED
Substrate Type
Benthic exceedance thresholds at peak biomass or before re-stocking
Compliance 2023
Hard Bottom
Beggiatoa species, similar bacteria or marine worms does not cover 10% or more of
any four segments of substrate.
Sulphide does not exceed 1 300 µM at 30 m and 700 µM at 125 m away from the cage
edge along two transects.
Sulphide does not exceed 1 500 µM outside the Allowable Zone of Effect*
Soft bottom
* ASC Salmon standard.
100%
100%
100%
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or copper from fish
nets. This impact should never be irreversible. Read more about our impact on nature here. In BC, regulations require us to conduct benthic tests at peak biomass at each farm, and
fallow the farm after ended production cycle until the seabed of the site reaches the regulated threshold of remediation. The test must be accepted by the regulators and, since our
farms are BAP and ASC certified farms, an independent third party.
The Aquaculture Activities Regulation, established under the Canadian Fisheries Act, sets exceedance limits for the benthic substrate monitoring according to the Monitoring Standard.
The sites cannot be restocked if they exceed these limits.
FIGURE 2.41
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high biodiversity value
Red list species impacted
100% of farms
None
None
We perform environmental and social impact assessment for all of our farms. Such assessments are also part of the ASC certification process, which includes criteria to minimize
environmental impact and preserve biodiversity. We do not have sites in the proximity of land nature reserves, nor do we have sites in or adjacent to protected areas or areas of high
biodiversity value (areas defined as Special Areas of Conservation (SAC), Marine Protected Areas (MPA), High Conservation Value Areas (HCVA) or Federal Marine Protected Areas).
For the definition of protected areas and areas of high biodiversity value, we refer to the ASC Salmon Standard. All site locations are available on our website.
FIGURE 2.42
IUCN RED LIST- AND NATIONAL CONSERVATION LIST SPECIES
Endangered
Critically endangered
Vulnerable
Near threatened
Least concern
IUCN Red List
Species at Risk Act
1
0
3
371
3
200
4
258
235
201
Our impact assessments also include identification of species listed in the IUCN Red List and BC’s national conservation list, Species at Risk Act (SARA), with habitats in areas where
we operate. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation status of plant and animal
species, and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the relative importance of these habitats from
a management perspective. Our assessments have not identified that our activities pose a threat to any endangered plants or animal species. We keep track of red listed species
impacted in areas affected by our operations as a part of the ASC-certification. No red list species was impacted in proximity of our operations in 2023.
As wild salmon is an important part of the Indigenous culture, we embrace the responsibility of not causing harm and has engaged in several wild salmon enhancement projects in
BC, including the Nootka Sound Watershed Society. The Nootka Sound Watershed Society works to protect, restore and enhance pacific salmonids and their habitat in Nootka Sound,
Esperanza Inlet (52.2 km2) through sustainable, science-based practices. Read more about the projects and their habitat status assessments here.
PART 02 - OUR OPERATIONAL RESULTS
38
LOCAL COMMUNITIES
We aim to be open and honest with local communities about
We are active in the communities in which we live and work
our production methods, our successes, and our remaining
through our sponsorship and donation program. Contributions
challenges. We view it as our responsibility throughout all of
include financial support, in-kind and employee knowledge
our farming regions to engage in constructive dialogue with all
sharing or participation. In 2023, we supported dozens of
stakeholders and groups that are impacted by our activities.
initiatives ranging from youth sports team funding to support for
We create jobs and opportunities in the rural areas where we
wild salmon restoration and enhancement. Throughout the year
operate, and we use local suppliers as often as we can. We hire
we have collected funds for local Food Banks, and supported
local apprentices and support aquaculture schools and training
school programs and camps for local children.
facilities. We sponsor sports and cultural activities, and we
engage in monitoring and protection of the local environment.
In British Columbia, we farm in areas that belong to Indigenous
We also provide a grievance mechanism for local communities
peoples. These groups have special rights, as acknowledged
on our website. This enable us to identify and prevent potential
in the United Nations Declaration on the Rights of Indigenous
negative impact on local communities, such as pollution of local
Peoples (UNDRIP), and Grieg Seafood takes particular care
environment and violations of human rights. In 2023, we did not
to avoid infringing them. The vast majority of our production
identify any significant negative impact on local communities
is covered by agreements with First Nations, and we are
from our operations.
pursuing agreements with others. These agreements are a
layer of regulation requiring compliance and the details of these
agreements are unique to each Nation. They ensure transparency
and Nation oversight to our operations while providing economic
and social benefits to each community. We are continuously
working to be in compliance with the agreements.
NOK 1 298 million
equal to 79% of total purchases, spent on goods and services purchased from local
suppliers in BC.
NOK 0.44 million
donated to local services and projects, all of which are pro bono. In 2023, we supported
dozens of community and Indigenous initiatives ranging from youth sports teams to
wild salmon restoration and enhancement projects. Throughout the year, we have
collected funds for local Food Banks and supported programs for local children such
as the Campbell River Angel Tree Society, various school programs and Uu-a-thluk
Science Camp.
Learn more about our relationships with our local community
here, and our approach to the implementation of UNDRIP and
our journey of reconciliation with Indigenous Peoples in British
Columbia here.
PART 02 - OUR OPERATIONAL RESULTS
39
3 184
TONNES GWT IN FIRST HARVEST
GRIEG SEAFOOD
NEWFOUNDLAND
Grieg Seafood Newfoundland is a greenfield project with fish farming rights
in Placentia Bay in Newfoundland and Labrador, and the only salmon farmer
in this area. We will develop the region gradually and responsibly, based on the
biological development of our first generations of fish.
OPERATIONAL RESULTS
In 2023, an important milestone was reached, when we
The farming cost (the total cost of producing and harvesting our
successfully conducted our first harvest from the first generation
fish) came to CAD 12.1 per kg (NOK 95.9) in 2023. The farming
of fish from our region in Newfoundland. The harvest volume was
cost is high due to the low harvest volume and to still being in a
3 184 tonnes. Sales revenues amounted to NOK 235.7 million and
development phase with low capacity utilization. There has been
our realized price for the year came to NOK 74.0 per kg. Our price
no recognition of abnormal mortality in the income statement.
achievement was supported by a favorable superior share of 97%
Parts of our operational cost have been allocated directly to the
in addition to good average harvest weight.
income statement as we are still in a development phase, which
totaled NOK 76.4 million (NOK 24.0 per kg) in 2023.
Production at our Recirculating Aquaculture System (RAS)
freshwater facility in Marystown Marine Industrial Park, in
While Newfoundland's emissions notably increased in 2023 due
Placentia Bay, remained on track. The new generation of fish at
to operational expansion following successful harvesting, our
the facility is healthy and growing well, with high survival rates.
Climate Action Plan anticipates continued emissions growth in
Approximately 2.5 million smolt were transferred from our
this region in the coming years. We plan to offset these increases
freshwater facility to three sea farms in Placentia Bay during the
with enhanced reductions in other farming regions, while also
spring and summer of 2023.
taking direct measures in Newfoundland. In 2023, we have
invested in diesel-electric power on all of our feed barges in
Our seawater licenses in Newfoundland require use of
Newfoundland, where two have been in operation during the year.
sterile all-female salmon in order to eliminate the risk of
These investments have reduced potential emissions by 50%.
genetic interaction of wild Atlantic salmon in case of escape. The
Read more about how we work to reduce our carbon emissions in
salmon is of European broodstock, and we apply best practices
Part 02 - Climate action.
from sterile production across the globe, tailored to ensure we
optimize the growth and health of our sterile all-female salmon
We are committed to maintaining a good working environment
production. We have a year-round supply of high-quality eggs,
and keeping our employees safe. In 2023, the total absence rate
and we optimize the conditions during the freshwater phase, the
for Newfoundland was 1.4%, well below our target of 4.5%. We
times of the year when the fish are transferred to the sea, and
are monitoring and following up on absence in accordance with
the feed composition. Sterile all-female salmon perform well in
procedures and guidelines. Read more about how we work to
cold environments and do not mature. Our fish have performed
secure our employees well-being and labor rights in Part 02 -
well biologically, with a 12-month rolling survival rate of 95%
People.
and good growth at sea, and we have not experienced sea lice
issues or other biological issues. We are still in an early phase
and will expand the project gradually and in line with biological
developments.
Obtaining ASC certification is an important signal that our salmon
is a responsible choice, as ASC has strict requirements with
respect to minimizing fish farms’ impact on the environment
and supporting local communities. We aim to certify our sites
in Newfoundland when the seawater sites are eligible for
certification.
PART 02 - OUR OPERATIONAL RESULTS
40
We remain committed to developing our operations in Newfoundland and Labrador
gradually and responsibly, and to meeting all regulatory requirements from the
local provincial and federal authorities. We are well prepared in terms of equipment,
employees and knowledge of biological conditions, and we will adjust our operations
according to the experience we gain from the first generations of fish. We are confident
that we will be able to build a strong farming region in Newfoundland during the coming
years and create jobs and value for our local communities.
FIGURE 2.43
RESULTS
NEWFOUNDLAND
Harvest (tonnes GWT)
Revenue (NOK million)
Operational EBIT (NOK million)
Operational EBIT / kg (NOK)
Farming cost / kg (NOK)
Farming cost / kg (CAD)
Other cost / kg (NOK)
2022
—
—
2023
3 184
235.7
-114.7
-146.1
n/a
n/a
—
6.0
-45.9
95.9
12.1
n/a
FIGURE 2.44
MAIN CAUSES FOR REDUCED SURVIVAL IN SEAWATER IN 2023
MAIN CAUSE
NUMBER OF FISH
TONNES OF FISH
Handling and/or treatments
Non-infectious diseases
Smolt related
Other known
Unknown
Total
Abnormal seawater mortality
write-down
%
1 928
921
29 755
21
200 890
233 515
0
—%
12
2
5
0.01
410
428
0
—%
The main causes of reduced survival in seawater are categorized according to a standardized mortality classification
report developed by the Norwegian University of Life Sciences (NMBU) together with industry leaders. In previous
years, we have classified mortality by the main categories ”infectious and “non-infectious” with subcategories.
The survival in Newfoundland is high and within expected goals. We have lost some fish due to transport related issues,
however the underlying cause is unknown. There have been no detections of infectious diseases, and the fish has not
been treated against sea lice.
SUSTAINABILITY SCOREBOARD
PILLAR
KPI
TARGET
STATUS
2023
2022
PROFIT &
INNOVATION
Harvest volume (tonnes GWT)
5 000 tonnes in 2023
Operational EBIT (NOK million)
Farming cost per kg (CAD)
Cost leader
HEALTHY
OCEAN
Survival rate in freshwater
Survival rate at sea
95% by 2023
Cost of reduced survival (NOK 1 000)
Use of antibiotics
(g per tonne LWE) *
Use of hydrogen peroxide
(kg per tonne LWE) *
Sea lice treatments - in feed
(g per tonne LWE) *
Sea lice treatments - in bath
(g per tonne LWE) *
No use of antibiotics
Minimize use of pharmaceutical treatments
Minimize use of pharmaceutical treatments
Minimize use of pharmaceutical treatments
Escape incidents (# of fish)
Zero escape incidents
Dead birds
Minimize impact on wildlife
Dead marine mammals
Minimize impact on wildlife
SUSTAINABLE
FOOD
Carbon emissions
(tCO2e)
35% reduction (from 2018)
in total emissions by 2030
Scope 1 + 2 location based
Scope 3
High quality product
93% superior share
Biological feed conversion ratio (bFCR)
Economic feed conversion ratio (eFCR)
PEOPLE
Employees
Absence rate
Lost time incident rate
Turnover rate
LOCAL
COMMUNITIES
Local procurement
Below 4.5%
**
* Amount of active pharmaceutical ingredients (APIs) used (in gr or kg) per tonne of fish produced (LWE).
** An LTIR target has not been defined in order to avoid under-reporting of incidents.
n/a: Data not available or not applicable as seawater production started mid-year 2022.
●
●
●
●
●
●
●
●
●
●
●
●
●
●
3 184
n/a
-146.1
-114.7
12.1
88%
95%
0
0
0
0
0
0
0
0
n/a
85%
n/a
n/a
0
0
0
0
0
n/a
n/a
5 524
2 244
39 985
8 890
97%
1.20
1.24
106
0
1.27
1.29
104
1.4%
1.6%
9
32%
27%
0
42%
37%
Please refer to Part 1 - Our pillars and material topics for a description of the general financial impact of each topic.
PART 02 - OUR OPERATIONAL RESULTS
41
OPERATIONAL PRIORITIES
LOCAL COMMUNITIES
North America is one of the world’s fastest growing market for
We aim to be open and honest with local communities about
Atlantic salmon, and currently only one sixth of demand is met
our production methods, our successes, and our remaining
by North American production. We already have a position in
challenges. We view it as our responsibility throughout all of our
this market through our operations in British Columbia, where
four farming regions to engage in constructive dialogue with
we have attained significant sales and market experience.
all stakeholders and groups that are impacted by our activities.
With proximity to important markets on the US East Coast, our
We create jobs and opportunities in the rural areas where we
Newfoundland region will significantly strengthen our US market
operate, and we use local suppliers as often as we can. We hire
exposure and open up to synergies with our existing operations
local apprentices and support aquaculture schools and training
as we should be able to provide a more stable supply to the US
facilities. We sponsor sports and cultural activities, and we
market year-round.
engage in monitoring and protection of the local environment.
We also provide a grievance mechanism for local communities
Our RAS facility currently consists of a hatchery, nursery and a
on our website. This enable us to identify and prevent potential
smolt unit with a capacity of 600 tonnes. We have resumed the
negative impact on local communities, such as pollution of local
first phase construction, which comprises the foundation and
environment and violations of human rights. In 2023, we did not
ground work, of the new post-smolt building. This investment is
identify any significant negative impact on local communities
estimated to approximately CAD 14 million. For the full year 2023
from our operations.
we have spent a total of NOK 355 million in investments, related
to start-up of the first phase construction of the new post-smolt
building, in addition to investments in seawater locations and
equipment for digital monitoring. We currently have 14 seawater
licenses, each with an allowance of one million fish at first
stocking, increasing to two million fish in subsequent stockings.
Five of our sites are stocked with fish at year end. We expect
to harvest 11 000 tonnes of salmon in 2024. We have also been
awarded rights to submit an application for license in the Bays
West area, with the potential to produce an additional 20 000
tonnes of salmon.
NOK 323 million
equal to 27% of total purchases, spent on goods and services purchased from local
suppliers in Newfoundland.
NOK 0.29 million
donated to local services and projects, all of which are pro bono. We support different
local youth sports clubs, such as hockey and darts. We also donated to the Burin
Peninsula Health Care Foundation, a direct support of the local health care centers
to improve the quality of care for patients and long term care residents. Additionally,
our support has been directed towards local food banks and charitable organizations,
assisting in the provision of clothing and facilitating social gatherings for the
community.
Learn more about our relationships with our local community on
our website.
FIGURE 2.45
USE OF COPPER
Copper-free antifouling
solutions on nets
100%
We did not use copper antifouling solutions on our nets in Newfoundland in 2023.
FIGURE 2.46
% OF SITES THAT ARE RESTORED
Substrate Type
Benthic exceedance thresholds at peak biomass or before re-stocking
Compliance 2023
Hard Bottom
Soft bottom
Beggiatoa species or similar bacteria, marine worms or barren substrate does not
cover 70% or more of the locations specified in the Monitoring Standard
50%
The mean concentration of free sulfide as calculated at the locations specified in the
Monitoring Standard does not exceed 3 000 µM
No primarily soft bottom sites active in 2023
As in all other types of food production, our farming operations leave a footprint through local emissions. Such emissions may be excess feed, feces from the fish or copper from
fish nets. This impact should never be irreversible. Read more about our impact on nature here. In 2023, samples from both our sites were sampled at peak biomass. One out of the
two sampled sites exceeded the threshold as outlined in the Aquaculture Activities Regulations (AAR) Monitoring Standard. Though the 70% threshold was exceeded, there was no
indication of barrenness due to aquaculture activities or off-gassing. Fauna such as sea anemones, crabs, brittle stars, shrimp, sea urchins, worms and encrusting sponges were
observed at the monitoring stations. This site will have an extended fallow period and follow-up monitoring prior to restocking. The site will not be restocked unless the monitoring
results indicates that the threshold of organic enrichment has been reduced to accepted levels.
FIGURE 2.47
PROTECTING MARINE ECOSYSTEMS
Impact assessments performed
Operations in protected areas/areas of high biodiversity value
Red list species impacted
100% of farms
Five farming sites, total area of 0.071km2 of water surface
None
We perform environmental and social impact assessment for all of our farms. Such assessments are also part of the ASC certification process, which includes criteria to minimize
environmental impact and preserve biodiversity. According to Department of Fisheries and Oceans (DFO), we have sites located in an area in Placentia Bay (~7800 km2), which is
classified as a “Ecologically and Biologically Significant Area” (EBSA). Grieg Seafood Newfoundland has conducted an Environmental Impact Statement (EIS) Assessment which was
reviewed by DFO and other regulators. Approval to operate in this area has been granted based on the assessment by both federal and provincial regulators. Our sites are located away
from Important bird areas and proposed leatherback sea turtle critical habitat identified within the EBSA.
FIGURE 2.48
IUCN RED LIST- AND NATIONAL CONSERVATION LIST SPECIES
Critically endangered
Endangered
Vulnerable
Near threatened
Least concern
IUCN Red List
Species at Risk Act
0
0
1
371
5
200
2
258
156
201
Our impact assessments also include identification of species listed in the IUCN Red List and BC’s national conservation list, Species at Risk Act (SARA), with habitats in areas where
we operate. The International Union for Conservation of Nature (IUCN) ‘Red List of Threatened Species’ provides an inventory of the global conservation status of plant and animal
species, and national conservation lists serve as authorities on the sensitivity of habitat in areas affected by our operations, and on the relative importance of these habitats from
a management perspective. Our assessments have not identified that our activities pose a threat to any endangered plants or animal species. We keep track of red listed species
impacted in areas affected by our operations as a part of the ASC-certification. No red list species was impacted in proximity of our operations in 2023.
Together with Provincial and Federal regulators, we have implemented monitoring procedures and protective measures as part of our commitment to co-existence with wild salmon
in Newfoundland. In late spring and summer 2023, we monitored upstream migration of adult, wild Atlantic salmon on the Come-by-Chance River and the Bay de l’Eau River. This was
the third year the Come-by-Chance River was monitored, with Atlantic salmon in sea at the Red Island AMA and Merasheen AMA. We expect to stock fish to sea during spring/summer
2024 in the Rushoon farming area, the first year of data collection on the Bay de l’Eau river is considered baseline.
In 2023, river monitors did not report any suspected farmed salmon based on their visual examination of salmon removed from the trap for sample collection nor from those salmon
observed within the trap at both the Come by Chance and Bay de l’Eau rivers.
PART 02 - OUR OPERATIONAL RESULTS
42
OUR
CERTIFICATIONS
To ensure that local communities, customers, and civil society can trust that we
farm responsibly and to the highest standards, we certify our farms according to
several recognized, third-party certifications.
Our farming operations in Rogaland, Finnmark and BC are
food safety, allowing food businesses that hold these recognized
certified according to BAP or GLOBALG.A.P. Both these
certificates to access all corners of the global market. External
standards for management systems are tailored to address
processing partners in BC hold the GFSI-recognized BAP
farming operations withing the aquaculture industry. Our harvest,
certification for their operations, while our external partners in
sales and market operations are chain-of-custody certified
Newfoundland and Norway either hold equivalent certificates or
according to ASC and/or GlobalG.A.P. ensuring traceability in
are on a path to GFSI-recognized certification. Read more about
our product value chain, and our internal processing plants are
our certifications and their current status here.
certified according to FSSC 22000, a Global Food Safety Initiative
(GFSI) recognized standard. While GFSI does not provide food
safety certification, it recognizes a number of certification
programs that meet the GFSI benchmarking requirements. GFSI-
recognized certification is a mark of the highest standards in
CERTIFICATE
DESCRIPTION
TARGET
STATUS 31.12.2023
ASC
Aquaculture Stewardship Council (ASC) was founded in 2010 by the
100% ASC
81% of our total harvest
World Wide Fund for Nature (WWF) and the IDH Sustainable Trade
certification
volume is ASC-certified.
Initiative to establish global standards for sustainable seafood
(or compliance
production.
with ASC) for
17 sites (86% of
active and
harvested volume) in
The ASC label only appears on food from farms that have been
eligible sites by
Finnmark,
independently assessed and certified as being environmentally and
2023.
All sites (100% of
socially responsible. ASC-certified salmon farms minimize impacts
Newfoundland
harvested volume) in
on the local ecosystem to protect biodiversity. Farms are required
aims to certify
BC, and
to measure various water parameters and remain within set limits.
when its
Six sites (74% of
Farms are required to adhere to rigorous requirements to minimize
seawater sites
harvested volume) in
disease outbreaks, keep sea lice levels low and can only use certain
are eligible for
Rogaland
medicines under very strict conditions. Use of wild fish as an ingredient
certification.
have received ASC
for feed must be minimized and full traceability back to a responsibly
certification.
managed source, preferably certified, must be ensured for both wild
fish and soy. There are also strict social requirements.
A Chain of Custody certification ensures that companies selling
certified seafood have identification, segregation and traceability
processes and procedures in place.
Our sales and market
organizations in Norway
and Canada are ASC
Chain of Custody
certified.
GLOBALG.A.P
Global Good Agricultural Practices (GLOBALG.A.P.) is a standard for
100% of farms
100% of our farms (thus
both agriculture and aquaculture. The standard covers food safety,
in Norway
100% of our production
animal welfare, sustainability, employment and traceability.
GlobalG.A.P.
volume) in Norway are
GlobalG.A.P. certification provides assurance that food has been grown
(certification
Rogaland have been
using recognized levels of quality and safety. It also ensures that it
not relevant for
certified since 2008, and
has been produced sustainably in a way that respects the health, the
Canada)
farms in Finnmark since
environment and the welfare and safety of workers and animals.
2016.
certified
certified. Our farms in
The Chain of Custody Standard ensures that the product is sourced
from GLOBALG.A.P. certified farms.
GlobalG.A.P is particularly important for customers in Europe.
Our sales and market
organization in Norway
is GlobalG.A.P. Chain of
Custody certified.
BAP
Best Aquaculture Practices (BAP) is an aquaculture standard that
92% of farms
92% of our farms (thus
covers practices in all stages of the fish farming process.
in Canada
85% of our production
BAP certification helps to assure consumers that the seafood they buy
(certification
certified. BC have been
is produced in a manner that is considerate of the animal’s welfare, the
not relevant for
certified since 2011.
environment, workforce and community, food safety and traceability.
Norway).
For the first time in late
BAP certified
volume) in Canada are
BAP is particularly important for customers in the United States.
2023, our Newfoundland
region started delivering
to the market and
has not yet achieved
certification.
FSSC 22000
FSSC 22000 is a certification scheme for Food Safety Management
100% of
We have two processing
Systems that is aligned with the ISO Management System approach
processing
facilities in Norway.
and the ISO Harmonized Structure. The FSSC 22000 standard is
plants (62% of
The processing plant in
recognized by the Global Food Safety Initiative (GFSI).
our production
volume) in
Norway FSSC
22000 certified
Finnmark was certified
in December 2022, while
the Rogaland plant was
certified in May 2023.
PART 02 - OUR OPERATIONAL RESULTS
43
SALES & MARKET
Grieg Seafood is part of a global salmon market, supplying 3% of
the global volume of Atlantic salmon harvested in 2023. As part
of our new strategy, we will reposition Grieg Seafood in the value
chain and become a strategic partner for selected customers.
THE GLOBAL SALMON MARKET
In 2023, the global volume of Atlantic salmon harvested
The average spot price for Norwegian salmon (NQSALMON,
decreased by approximately 2% compared to 2022, according
weekly average) for 2023 varied significantly during the year,
to Kontali. A total of 2 516 463 tonnes GWT (gutted weight
depending on supply to the market. The same trend was
equivalent) was estimated to have been harvested globally in
observed in the North American market. The spot market
2023, down from 2 577 042 tonnes in 2022. Chile contributed an
price stood at NOK 88.7 per kg at the beginning of the year. It
increase in output of 11 430 tonnes, while most other salmon
increased to a peak above NOK 126 per kg mid-March before
producing countries saw their output fall. Norway experienced
Easter holiday, then fell to the high-60s at the end of August,
a reduction of 34 020 tonnes and Canada a reduction of 20 790
bouncing back and closing the year at NOK 99.0 per kg. The
tonnes (all figures in GWT).
12-month average NQSALMON for 2023 came to NOK 92.3 per
kg, compared to NOK 82.0 in 2022. Spot salmon prices in the US
Salmon exports from Norway fell by 2% in 2023 compared to
market started the year at NOK 97.5 per kg, peaked at around
2022. The volume of fresh salmon exports decreased by 1%,
NOK 113 per kg before Easter holiday and ended the year at NOK
while exports of fresh salmon filet decreased by 7% compared
70.9 per kg. The average price came to NOK 84.7 per kg, down by
to 2022. The main export markets for salmon from Norway were
NOK 20.6 per kg compared to 2022.
Europe, which accounted for 75% of the volume, while Asia
accounted for 17% and North America 8% (source: Norwegian
Seafood Council). The total volume supplied by Canada decreased
by 17% in 2023 compared to 2022.
Demand for farmed salmon both in the retail and HoReCa sectors
was strong in 2023. However, due to the limited supply of salmon,
consumption decreased by 5% in the European market in 2023
compared to 2022. Consumption in China and Russia increased
by 39% and 19%, respectively.
FIGURE 2.49
GLOBAL HARVEST OF ATLANTIC SALMON IN 2023
Source: Kontali Analyse AS
FIGURE 2.50
GLOBAL CONSUMPTION OF ATLANTIC SALMON IN 2023
Source: Kontali Analyse AS
10%
4%
5%
27%
53%
11%
3%
4%
15%
24%
44%
PART 02 - OUR OPERATIONAL RESULTS
44
OUR SALES & MARKET RESULTS
We continue to capitalize on the benefits of having a fully
integrated global sales organization and reached further key
milestones in 2023. We strengthened processing capacity
with partners in Norway, Europe and Western Canada during
the year. We have an increasing supply of our own VAP (Value
Added Processing) products in the European, Asian and the US
markets. 5% of our global harvested volume in 2023 was sold as
VAP. We aim to build on this development by optimizing biological
performance and market timing through close collaboration
between farming and sales, thereby securing good price
achievement. The sales organization of Grieg Seafood operates
as one coherent unit across the global salmon market, and we
expect to leverage this for both our Norwegian and Canadian
origins.
By a continued focus on sustainable farming practices and good
fish health and welfare, we can provide the safe, healthy, tasty,
and high-quality product that our customers and consumers
demand. Through our food safety management system we ensure
that our products are safe throughout harvest, processing and
logistics on it’s way to the market. We are transparent about
our farming and production methods and communicate our
standards and results to our customers. All our products are
intended for human consumption. Read more about why our
salmon is healthy and nutritious here.
Products originating from our processing plants have been
handled according to our Food Safety Management System
ensuring compliance with principles and requirements for
HACCP- and food hygiene programs in food production. We
have not had any product recalls related to serious food safety
incidents for the last ten years, nor did we have any in 2023.
No serious incidents of food safety non-conformities in regard
to requirements in regulations or voluntary codes have been
reported in 2023. Our product is not banned from any markets. To
manage possibly product recalls and serious incidents related to
food safety, regular training is performed. Read more about how
we work with food safety on our web site.
OUR MARKETS
Grieg Seafood accounted for 2.9% of the global supply of Atlantic
salmon in 2023. Continental Europe is by far our most important
market, accounting for 56% (63%) of our volume and contributing
53% of our sales revenue in 2023. North America is our second
largest market, and accounted for 31% (26%) of our volume and
31% (29%) of our revenues in 2023. The market distribution of
sales varies year on year, depending on the volumes harvested
across our regions. The main change in our sales distribution
was a decrease to Continental Europe from 58% in 2022 to 53%
in 2023. We decreased our harvested volume by 21% from our
Norwegian farming operations in 2023, while we harvested
3% more in Canada compared to 2022, mainly as a result of
the first harvest in Newfoundland. In 2023, 15% of our total
sales were to airborne markets, mainly delivered from our
Norwegian operations. Our main export markets from Norway
were Europe (79% of our volume) with a strong focus on key
markets in southern Europe, Asia (17%) and North America (4%).
6% of our volume of Norwegian origin was sold as value added
products. Approximately 31% of our salmon from BC was sold
in Canada, while 68% was sold to the USA and 1% to Asia. 7% of
our harvested salmon was processed and sold as value added
products, while the Skuna Bay brand made up approximately 3%
of the volume. We did not have any sales to Russia or Belarus in
2023. See here for further details of sales revenues by markets
and products.
Our sales revenues amounted to NOK 7 020 million, a decrease
of NOK -144 million or 2.0% from 2022. The decrease in sales
revenue is due to a 15% lower volume harvested in 2023. The
group's price achievement was NOK 82.7 per kg compared to
NOK 75.8 per kg in 2022. By comparison, the average NQSALMON
price for 2023 came to NOK 92.3 per kg compared to NOK
82.0 in 2022. The price realization was negatively impacted by
contracts for some of our Norwegian volume, in addition to price
achievement on production grade harvest volume. For more
information on our harvested volume and sales performance, see
the regional chapters in this report.
FIGURE 2.51
NQSALMON WEEKLY AVERAGE (NOK/KG)
Source: NASDAQ Salmon Index
2020
2021
2022
2023
2024
120
100
80
60
40
1
6
11
16
21
26
31
36
41
46
51
2020
2021
2022
2023
2024
FIGURE 2.52
URNER BARRY FARM RAISED SALMON SEATTLE WEST COAST,
FRESH, WHOLEFISH (NOK/KG)
2020
2021
2022
2023
120
100
80
60
40
1
6
11
16
21
26
31
36
41
46
51
The Urner Barry Farm Raised Salmon Seattle West Coast, Fresh, Wholefish shown above is a weekly average of all weight classes (4-6 lb, 6-8 lb, 8-10 lb,
10-12 lb,12-14 lb, 14-16 lb, 16-18 lb) in USD/lb, converted into NOK/kg using the weekly average of Norges Bank's daily exchange rate. There are no
registered UB entries for Farm Raised Salmon, Fresh Wholefish Seattle in week 2-10 in 2023 nor in the beginning of 2024 due to limited availability of UB salmon prices.
2021
2022
2023
2020
PART 02 - OUR OPERATIONAL RESULTS
45
MARKET EXPECTATIONS AND
OUR PRIORITIES
The global harvest of Atlantic salmon in 2024 is expected
While our sale currently consists mainly of fresh, head-on gutted
to increase by 2% compared to 2023, to a total of 2 857 600
salmon, we aim to establish processing partners close to key
tonnes, according to Kontali (figures in whole fish equivalent,
markets and customers in the EU and the USA, targeting 20-30%
WFE). Norwegian salmon farmers are expected to harvest
share of our volume for Value Added Processing (VAP) by 2026.
approximately 46 000 tonnes more in 2024 than in 2023, while
To further strengthen our processing capacity, we have decided
the UK and the Faroe Island are expected to increase harvest by
to invest in a new 10 000-12 000-tonnes capacity secondary
approximately 14 000 tonnes each. Chile is expected to decrease
processing facility at Oslo airport Gardermoen. We expect the
harvest for 2024 by approximately 35 000 tonnes while Canada
facility to be operational from Q3 2025. Increasing our VAP share
is expected to increase harvest by approximately 6 000 tonnes.
is integral to our CO2 emissions reduction strategy, as it reduces
The current harvest estimates indicate no supply growth in the
the need to transport non-edible salmon parts to markets. We
first half of the year, with the main increase coming towards
also aim to develop B2B brands going forward. Currently, we
year end. With expectations of limited growth in global harvest
have the successful Skuna Bay brand in the USA.
in 2024, combined with an outlook for continuing strong demand
fueled by an increased focus on healthy food and sustainably
North America is one of the world’s fastest growing market for
produced proteins, we expect a sustained strong market in 2024.
Atlantic salmon, but only one sixths of the demand is currently
The current Fish Pool forward price reflects this, with an average
met by North American production. We already have a position
price around NOK 100 per kg for 2024. We currently have a
in this market through our operations in British Columbia,
contract share for 2024 of 6% of our Norwegian harvest volume.
where we have attained significant sales and market experience.
We do not have contracts in Canada.
With proximity to important markets on the US East Coast, our
Newfoundland region significantly strengthens our US market
exposure.
FIGURE 2.53
OUR MARKETS BY SALES REVENUES
FIGURE 2.54
OUR MARKETS BY HARVESTED VOLUME
Asia
North America
UK
Continental Europe
PART 02 - OUR OPERATIONAL RESULTS
46
CLIMATE ACTION
While farmed salmon has a low carbon footprint compared to other
animal proteins, our industry must do its part to achieve the goals set
out in the Paris Agreement. New solutions must be developed to cut
emissions in our operations and along our value chain.
PART 02 - OUR OPERATIONAL RESULTS
Reducing carbon emissions
drastically. In Rogaland, our focus on post-smolt practices
has led to carbon reduction by minimizing the need for sea
lice control treatments. We anticipate similar benefits in other
According to the High-Level Panel for a Sustainable Ocean
regions as smolt sizes increase.
Economy (Ocean Panel), food production from the sea may be
advantageous from a climate perspective, because the carbon
While Newfoundland's emissions notably increased in 2023 due
footprint from production is low compared to terrestrial animal
protein production (see Figure 1.2 in our Aquaculture in a
sustainable global food system chapter). However, we recognize
that we must do more to cut carbon emissions from our farming
operations and supply chains. Direct carbon emissions from our
production (Scope 1 & 2) account for 8% or 31 000 tCO2e of our
total emissions. 92% or 382 000 tCO2e, of our emissions originate
from our value chain (Scope 3), particularly those aspects linked
to fish feed and the transportation of salmon to our markets.
Our climate action target is to reduce carbon emissions by 35%
to operational expansion following successful harvesting, our
climate action plan anticipates continued emissions growth in
this region in the coming years. However, we plan to offset these
increases with enhanced reductions in other farming regions, as
outlined in our strategy.
GREENHOUSE GAS EMISSIONS
In 2023, our total greenhouse gas (GHG) emissions increased
by 9%, or close to 34 000 tCO2e, compared to 2022. The increase
is mainly attributable to an increase in our emission factors
towards 2030, and by 100% in 2050, with 2018 as the baseline
from feed in Scope 3, operational expansion and harvest in
year. This reduction target is for Scope 1, 2 & 3. Our carbon
Newfoundland, and purchase and distribution of a larger volume
emission reduction targets are classified as well-below 2°C
global warming, and aligned with the Paris Agreement. Our
emission targets have been approved by the Science Based
of external fish compared to previous years. Feed emissions
increased by 13%, or close to 30 500 tCO2e compared to the year
before, which contributed significantly to an increase in Scope 3
Targets initiative (SBTi). More information can be found here.
emissions. Despite the substantial increase in the Newfoundland
CLIMATE ACTION PLAN UPDATE
In 2022, we developed a comprehensive climate action plan
region following successful harvesting, we have experienced
reduction in our other operating regions. This has constrained
the overall rise in our total emissions for 2023. It should be noted
outlining the necessary measures and investments to achieve
that according to our climate action plan, we expect emissions
our climate targets. This plan emphasizes the importance of
in Newfoundland to keep increasing in the subsequent years as
operational changes affecting Scope 1 & 2 emissions, as well as
production volume increases.
supply chain adjustments in Scope 3. Our goals include reducing
operational fossil fuel consumption, transitioning to renewable
electricity, and implementing supplier requirements to lower
our absolute emission levels. We are also investing in site and
boat electrification, promoting novel feed ingredients with lower
emissions, and reducing transportation-related emissions.
In 2023, we continued to implement and monitor the projects
outlined in the plan, making any necessary adjustments based on
our progress. We have also enhanced our governance of emission
reduction initiatives through internal ESG training, improved
documentation, and increased regional involvement to ensure the
effectiveness of our efforts. Given the reliance on innovation and
development for our projects, we recognize the need for flexibility
in our climate plan, particularly due to technical risks impacting
cost estimates and emission reduction potential. Collaborating
with suppliers and customers has allowed us to improve data
quality and reporting, while increased stakeholder attention to
carbon emissions has further supported our initiatives.
In our farming regions Rogaland and Finnmark, we have
continued investing in sea site electrification to eliminate
fossil fuel usage. Diesel-electric batteries have been acquired
in all regions, significantly reducing fuel consumption and
improving feeding operations at sea sites. In British Columbia,
we have replaced barge feeding compressors with high efficient
flowpressors, reducing our energy and fuel consumption
SCOPE 1 & SCOPE 2 EMISSIONS
Our absolute Scope 1 and Scope 2 GHG emissions increased
by 3%, or approximately 800 tCO2e, in 2023 compared to 2022,
while harvest volume decreased by 15% due to biological
challenges and focus on growing biomass in 2023. As a
consequence, the emissions measured as kilograms of CO2
equivalents per tonne harvested increased by 21%. In Rogaland,
total emissions decreased by 1% from 2022 to 2023, accompanied
by a 8% decrease in the harvested volume. As a consequence,
emissions per tonne increased by 9%. In Finnmark, total
emissions increased by 11%, primarily attributed to treatments
and preventive actions undertaken to address the biological
issues prevalent in the region. Furthermore, we have included
emission data from an operational service boat, which were
previously unaccounted for. Due to the significant decrease in
harvested volume of 30%, the relative emissions increased by
59%.
Well-boat services make up a substantial proportion of our
emissions, and whether we decide to provide these services
ourselves or outsource them to external service providers has a
considerable influence on our Scope 1 emissions. In Rogaland,
BC, and Newfoundland well-boat emissions are included in
Scope 1, while well-boat emissions in Finnmark are categorized
as Scope 3 due to contractual considerations. Finnmark’s
Scope 3 emissions from well-boat activities in 2023 totaled 3 250
tCO2e.
47
In BC, total emissions in Scope 1 and 2 decreased by 20%,
Value-added processing and details of the exact transportation
accompanied by a decrease of 13% in the harvested volume.
routes were not taken into consideration due to lack of data
This caused relative emissions per tonne to decrease by 9%. The
availability. In 2023, we collaborated with our seafood logistics
reduction can be explained by the closure and decommissioning
software provider to create a tool that monitors real-time
of five operating farms in the Sechelt production area. An added
emissions from our downstream transportation and distribution
contributor to the decrease is our CoolFlow trial aeration barges
activities. This software tool is designed to enhance accuracy in
which we installed on some of the sites. The volume harvested in
tracing the path of our salmon from the harvesting facility to the
BC varies significantly every other year, however our emissions
end consumer. We plan to implement this tool in 2024. Moreover,
are not correlated with harvested volume as production, or
the establishment of a processing facility in Oslo Airport City at
activities to prepare for production, might still take place.
Gardermoen will notably decrease emissions from transporting
our salmon to various markets.
In Newfoundland, we started harvest of our first generation in
Q4 2023. As a result, we had a significant increase in Scope 1
and 2 emissions. Seawater production resulted in a noticeable
Fish feed
Carbon emissions from fish feed are calculated on the basis of
increase in Scope 3, due to the use of feed and transportation
the amount of feed used and the carbon emission factor of the
and distribution of our first harvested volume. As our operation
feed products used. Our carbon emissions from fish feed are
continues to grow in Newfoundland, we are expecting an increase
highly dependent on the different raw materials used in the feed,
in emissions in the years to come.
Our total energy consumed for 2023 was 152 672 MWh from
Scope 1 and 2, whereas the percentage renewable energy
as well as the life cycle assessments and methodology chosen
by our feed suppliers. More information about the composition
of our feed can be found in our chapter on feed ingredients. Fish
feed carbon emission factors are calculated on the basis of life
(location-based) was 21.4%. The percentage grid electricity
cycle assessments (LCAs) and appear to be variable over time
varies in our operating regions. In Rogaland, 53% of our
and different between our suppliers. The reason for this is that
farms are powered by onshore electricity, and in Finnmark
data quality and transparency vary and increase in relation to the
57% of our farms are connected to the onshore grid. In BC
efforts made and resources allocated to those comprehensive
and Newfoundland the infrastructure provides challenges in
analyses.
connecting farms to onshore grid. However, we are investing
in diesel-electric power and other technology to increase our
Our feed-related emission factors increased from 2022 to 2023.
renewable energy share.
SCOPE 3 EMISSIONS
The two most substantial contributors to Scope 3 emissions
are downstream transportation and fish feed. Downstream
transportation accounts for 18% and fish feed for 63% of our total
emissions (19% and 68% of our Scope 3 emissions, respectively).
As shown in Figure 2.55, our total emissions increased by
approximately 34 000 tCO2e in 2023.
Downstream transportation
In 2023, we experienced a decrease of 17% or 15 000 tCO2e in
downstream transportation in our operating regions from 2022.
There are various reasons for this development. The choice of
transport mode is influenced by logistical restrictions, harvest
schedules, availability and demand for certain sizes and qualities
of fish, and prices. However, we increased our purchase, resale,
and transportation of external fish compared to prior years in
2023. This activity, recorded in “ASA and sales”, contributed
an additional 19 300 tCO2e. Consequently, our total transport
emissions increased by 5% or 4 300 tCO2e from 2022 to 2023.
In general, downstream transportation is calculated as transport
from the harvesting facility to the airport of departure to the
destination country (capital) by air in tonne-kilometers (tkm). For
all sales from our Canadian operations (mostly delivered to the
North American market), transport was calculated to the state
capital in order to achieve an acceptable degree of precision.
PART 02 - OUR OPERATIONAL RESULTS
We have worked continuously through 2023 on getting more
specific data regarding carbon emissions from feed, down
to the specific feed product level. This information has been
supplemented by a list of additional information, such as LCA
database used, calculation methodology, data aggregation level
and origin. As a result of this supplemented information, we have
been able to conclude with two reasons for the increase in feed-
related emissions from 2022 to 2023. The main reason is that
our feed suppliers use different sources (database or primary
data) when calculating emissions from different raw materials.
The other reason is that the volume supplied from different feed
suppliers often vary from one year to another. Consequently,
depending on which supplier delivers the most volume in a given
year, our volume-weighted emission factor will differ.
Towards the 2030 target
Our climate target is set in line with SBTi, which requires a
baseline year as starting point. In 2023, we have a total reduction
in Scope 1, 2 and 3 of 6% from our 2018 baseline year, which
shows that we are moving towards a 35% reduction in 2030.
Although there has been a significant increase in emissions from
our operations in Newfoundland, attributed to expansion efforts,
we have successfully reduced emissions in other regions. This
progress ensures that we remain aligned with our objectives. The
increase in emissions from Newfoundland was anticipated and
has been factored into our climate action plan.
OUR GREENHOUSE GAS ACCOUNTS
FIGURE 2.55 GREENHOUSE GAS EMISSIONS SCOPE 1 + 2 + 3
REGION
Scope
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
ROGALAND
Downstream transportation
Fish feed
Other
Total (Scope 3)
Total GHG emissions Rogaland
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
FINNMARK
Downstream transportation
Fish feed
Other
Total (Scope 3)
Total GHG emissions Finnmark
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
TOTAL EMISSIONS (tCO2e)
2022
2021
*Baseyear 2018
RELATIVE EMISSIONS (kgCO2e / tonnes)
2021
2022
2023 *Baseyear 2018
2023
3 939
8 519
7 433
456
331
287
4 395
8 850
7 720
7 363
309
7 673
58 454
40 567
54 409
44 179
86 257 104 470
89 472
92 257
4 065
6 350
6 248
9 983
148 776 151 387 150 129
146 419
153 171 160 237 157 849
154 091
7 134
5 122
4 948
420
591
496
7 554
5 713
5 444
5 480
580
6 059
52 971
13 963
21 739
20 066
115 949 131 286 101 894
97 065
9 921
9 645
12 323
8 631
178 841 154 894 135 956
125 762
186 395 160 607 141 400
131 821
9 143
15 129
14 509
11 501
783
629
513
476
270
332
272
295
9 131
9 401
5 676
6 008
5 289
5 561
5 636
5 931
254
166
151
241
6 007
6 260
4 492
4 657
3 774
3 925
4 997
5 237
9 926
15 758
15 022
11 977
597
1 091
741
677
BRITISH
COLUMBIA
Downstream transportation
45 602
4 884
12 097
7 809
Fish feed
Other
Total (Scope 3)
Total GHG emissions British Columbia
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
Downstream transportation*
Fish feed
Other
Total (Scope 3)
38 116
46 700
29 934
34 058
5 695
6 563
7 454
89 413
58 147
49 485
99 339
73 905
64 507
1 637
429
2 066
1 572
672
2 244
7 627
49 494
61 471
4 855
670
5 524
5 376
5 973
4 025
5 115
2 439
3 180
2 799
3 477
n/a
n/a
n/a
1 735
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
212
523
735
n/a
1 184
8 427
36 907
463
1 893
8 890
39 985
n/a
n/a
n/a
n/a
n/a
12 557
n/a
14 292
Total GHG emissions Newfoundland
n/a
2 801
11 134
45 509
Scope 1
Scope 2 location based
Total (Scope 1 + 2)
Scope 3
Other**
Total (Scope 3)
Total GHG emissions Other
Scope 1 (tCO2e)
—
33
33
253
253
286
1
14
15
2
12
14
4
12
16
991
991
1 006
4 470
4 470
4 484
20 435
20 435
20 451
20 216
30 408
28 464
29 202
NEW-
FOUNDLAND
ASA & SALES
Scope 2 location based (tCO2e)
1 692
1 994
1 980
2 047
Total Scope 1 + Scope 2 location based
21 908
32 402
30 444
31 249
349
429
359
434
Scope 3
TOTAL GROUP
Downstream transportation
Fish feed
Other
Total (Scope 3)
Total GHG emissions Group
157 027
59 414
88 245
73 237
240 322 282 668 229 727
260 287
19 934
24 072
30 958
48 569
417 283 366 154 348 930
382 093
439 191 398 556 379 374
413 342
6 655
7 005
4 843
5 272
4 120
4 479
5 306
5 740
*In 2023, we included downstream transportation for Newfoundland for the first time as we started harvest of our first generation in Q4 2023.
**In 2023 we purchased, re-sold and transported a larger volume of external fish, hence the significant increase in “Other” Scope 3 emissions from ASA and sales compared to
previous years. Specifically, the transportation of external fish accounts for 19 329 tCO2e of the “Other” Scope 3 emissions from ASA and sales.
48
Scope 3 challenges
We strive to continuously improve our collection of Scope 3
Scope 2 emissions are indirect emissions relating to third-party
generation of the electricity we consume at our sites. Emissions
emissions data. Some of the figures are only technical estimates
are reported as location-based emissions in accordance with
of our actual emissions, calculated on the basis of science-based
the GHG Protocol (market-based Scope 2 emissions can be
emission research. However, we deem the disclosure of our
found in the response field of GRI standard 305-2 in our GRI
FIGURE 2.56
SCOPE 3 MAPPING PER REGION/UNIT
Status
Data collected
Scoped out
Data not available
Category
Subcategory
Rogaland
Finnmark BC
Newfound-
land
ASA
Sales
Norway
Sales
NA
Scope 3 emissions to be an important step towards achieving
index). Location-based factors are from the International Energy
1
Purchased goods and services
Fish feed
awareness of those emissions and encouraging our suppliers
Agency (IEA), using three-year rolling averages. For electricity
to also conduct annual greenhouse gas accounting, even if data
consumed in Norway, we apply the Nordic mix, since this is the
accuracy is an aspect we need to improve on. This will help us,
most representative emission factor for Norway. This is because
our industry and all business sectors linked to our industry to
Norway is almost self-sufficient when it comes to electricity,
improve in concert as we go forward.
GHG REPORTING STANDARD
Our greenhouse gas emissions are reported in accordance with
the Corporate Accounting and Reporting Standard, developed
by the Greenhouse Gas Protocol Initiative (GHG Protocol), using
the operational approach. We report on all seven greenhouse
gases covered by the Kyoto Protocol (CO2, CH4, N2O, HFC, PCFs,
SF6, NF3), which are converted to CO2e. 2018 is defined as our
baseline year in accordance with SBTi guidance that companies
should "choose the most recent year for which data is available
as the base year". When structural changes, improved data
collection methods or discovery of significant errors occur, the
GHG Protocol supports recalculating the base year*. However,
it is important to note that certain changes do not require
recalculation, for example, changes involving facilities that
did not exists in the base year, out/in-sourcing of activities
previously reported under a different scope, and organic growth
or contraction.
*Grieg Seafood Shetland was divested in 2021, and is excluded from the base year
and all current years. Additionally, our former sales organization, Ocean Quality,
was divested in 2020 and is thus excluded from the base year. As Grieg Seafood
Newfoundland was acquired in 2020, but did not exist before the acquiring year, it is not
included in the base year.
Scope 1 emissions are those that are directly emitted by Grieg
Seafood’s activities and include emissions from the combustion
of fossil fuels for generators, heating and our own vehicles.
Emissions are calculated based on the purchased quantities of
commercial fuels . We also have a relatively small consumption
of hydrofluorocarbons (HFC) for cooling, which are included
in Scope 1. All Scope 1 emission factors used are from DEFRA
(the UK’s Department for Environment Food and Rural Affairs).
Underlying data is collected from financial cost.
while the bulk of the electricity imported to Norway comes from
Sweden and Denmark (nve.no). The Nordic mix is calculated as a
weighted average of the Swedish, Norwegian, Finnish and Danish
factors. Underlying data is collected from metered electricity
consumption and invoices from electricity suppliers.
Scope 3 emissions are all other indirect emissions (not included
in Scope 2) that occur in our value chain, including both upstream
and downstream emissions. In 2021 we had the first year with
comparable Scope 3 figures. However, in 2022 we managed
to improve our data collection processes to the extent of
calculating historic Scope 3 emission to achieve a comparable
trend from the base year. Throughout 2023, our efforts have
been centered on enhancing the quality of data in existing
categories and examining the potential integration of additional
relevant emission categories into Scope 3. We have mapped
the emissions in our supply chain in a comprehensive analysis
and identified the categories most relevant to Grieg Seafood.
Upstream, we included (1) Purchased goods and services,
(3) Fuel and energy-related activities (not included in Scope 1 or
Scope 2), (4) Upstream transportation and distribution, (5) Waste
generated in operations, and (6) Business travel. Downstream,
we included (9) Downstream transportation and distribution, and
(15) Investments. The categories correspond to the 15 Scope 3
categories defined by the GHG Protocol. Underlying data is
collected from production data, financial cost or suppliers, or
estimated based on production data.
Capital goods
Well-boat services
EPS boxes
N/A
Fuel and energy-related activities Well-to-Tank (WTT)
Upstream transportation and
distribution
Boat/truck transportation
Waste generated in operations*
Waste
Business travel
Air travel
Employee commuting
Employee mileage
Public/private
transportation
Upstream leased assets
N/A
Downstream transportation and
distribution
Goods transportation
Processing of sold products
Use of sold products
End-of-life treatment of sold
products
Downstream leased assets
Franchises
N/A
N/A
N/A
N/A
N/A
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Investments
Nordnorsk Smolt**
Tytlandsvik Aqua
* Waste generated in operations was included for the first time in BC for 2023.
**Nordnorsk Smolt was scoped out in 2022 due to no production, but included again in 2023.
FIGURE 2.57
GREENHOUSE GAS EMISSIONS DEVELOPMENT
FROM BASE YEAR (1000 tCO2e)
439
1 + 2 (tCO2e)
Scope 3 (tCO2e)
399
379
413
285
LEARN MORE ON OUR WEBSITE
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Our policy for climate action
Reducing carbon emissions
2018
2021
2022
2023
2030
The chart shows the last three years compared with the base year, and our
development towards our 35% reduction target in 2030
PART 02 - OUR OPERATIONAL RESULTS
49
SUSTAINABLE FEED
INGREDIENTS
We are conscious of the environmental and social risks that may be connected to
feed ingredients and are committed to responsible sourcing. We are committed
to reduce the impacts from our fish feed. As an industry, we also need to develop
new feed ingredients in order to grow sustainably.
TOWARDS MORE SUSTAINABLE
FEED INGREDIENTS
Grieg Seafood has identified and mitigated the most material
risks related to our feed ingredients, such as overfishing and
deforestation. With a growing aquaculture sector, we need new
marine and protein-based feed ingredients in order to reduce the
environmental and social impact in the years to come.
CERTIFICATIONS
To ensure that our ingredients do not contribute to overfishing
and deforestation, we require recognized certification of our
high-risk ingredients. Fish meal and fish oil from fisheries and
Brazilian soy and palm oil are identified as high-risk ingredients.
In 2023, all our marine ingredients (excluding trimmings)
in feed were based on fisheries certified according to the
Marine Stewardship Council (MSC) or MarineTrust (including
FIPs). As a member of MarinTrust Governing Body Committee
(GBC), we continuously work towards increasing the share of
certified fisheries across the industry. All Brazilian soy protein
concentrate was certified according to ProTerra or Round Table
on Responsible Soy (segregated). The only region where we used
a small amount of palm oil (0.10% of the raw material content)
was in Newfoundland. The palm oil used was certified according
to Round Table on Sustainable Palm Oil.
FIGURE 2.58
FEED INGREDIENTS IN 2023
Rapeseed oil
Fishmeal
Soy protein concentrate
Wheat gluten
Fishoil
Beans and peas
Wheat
Guar
Sunflower
Micro ingredients
TRACEABILITY
Feed traceability is a key concern in aquaculture, as it relies on
depleted fish stocks or plant-based protein which is associated
with natural ecosystem conversion. We are in close dialogue with
our feed suppliers concerning the sourcing of raw material, and
we expect continuous improvements in our feed supply chains
with respect to environmental, social and governance (ESG) risks.
We require information on each ingredient and raw material in
the feed we buy, including the origin of all ingredients used as
well as how they were produced. This covers the entire supply
chain – from farm/boat to feed manufacturer. While we recognize
that it will take time to provide the traceability needed in all
supply chains, we require continuous improvements every year.
In 2023, we improved our level of traceability on our high-risk
ingredients. We were able to identify the vast majority of the
species, origin and certification of forage fisheries and trimmings
used in our feed. Additionally, we managed to trace soy to
national and regional level.
LEARN MORE ON OUR WEBSITE
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→
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Supplier Code of Conduct
Sustainable feed policy
Our feed approach
6%
2%
5%
18%
9%
10%
PART 02 - OUR OPERATIONAL RESULTS
This illustrates the average raw material content in our feed
used in Norway and Newfoundland. In BC, the content is
somewhat different, as, in general, a larger proportion of
vegetable protein is replaced by animal-byproducts. Palm oil
constituted 0.10% of the raw material ingredients in the feed
used in Newfoundland.
11%
13%
11%
15%
50
ZERO DEFORESTATION
Our Brazilian soy protein concentrate vendors, CJ Selecta,
NOVEL FEED INGREDIENTS
The aquaculture industry is looking at developing novel feed
Imcopa and Caramuru, were the first Brazilian soy traders to
ingredients to mitigate sustainability-linked risks such as
set a 2020 cut-off date for their entire soybean business in the
deforestation and overfishing. We must ensure that a scale-
Cerrado, and establish a robust MRV system. With this move,
up of ingredients does not repeat the mistakes of the past by
they have set a new benchmark for sustainable supply chains
contributing to new or unforeseen ESG risks. As a member of the
globally. We have engaged with these producers and applaud
Global Roundtable on Marine Ingredients and the Global Salmon
their leadership. Read more here.
Initiative Climate Taskforce, we take part in commercializing
novel feed ingredients that are a good fit for a future sustainable
We participated in the CDP Forest program for the fourth time
food system. In 2021, we initiated a project to perform a holistic
in 2023. CDP Forest provides a framework of actions to measure
evaluation of ESG risks relating to salmon feed ingredients in
and manage forest-related risks and opportunities, transparent
order to increase transparency and traceability, to enable us to
reporting on progress, and commitment to work proactively for
benchmark feed ingredients on material ESG aspects and have
the restoration of forests and ecosystems. We scored B on our
the ability to reduce risk and drive change throughout our supply
work against deforestation related to soy. Additionally, Grieg
chains. The project was adopted by Global Salmon Initiative (GSI)
Seafood was acknowledged as a supplier engagement leader
and has received approval from all members, including Grieg
(A-) by CDP in recognition of our efforts to measure and reduce
Seafood. The project was launched in March 2024. Read more
climate risk within our supply chain. For more information,
about how the project is driving industry-wide accountability
please visit CDP’s website.
here.
FIGURE 2.59
TARGETS AND ACHIEVEMENTS 2023
Targets
All marine ingredients (excluding trimmings) used are based on fisheries
certified according to MSC or MarineTrust (including FIPs)
Achievements 2023
Yes, in all regions for the full year
FFDRo below 2.52 (ASC requirement)
Yes, in all regions
FFDRm below 1.20 (ASC requirement)
Yes, in all regions. The level is below 1.0, making us a net producer of
marine protein
All Brazilian soy protein concentrate certified according to ProTerra or
segregated RTRS
Yes, in all regions using Brazilian soy protein concentrate
All Brazilian soy protein concentrate supplied by Brazilian vendors with a
2020 cut-off date + robust MRV system
Yes (in all regions using Brazilian soy protein concentrate). CJ Selecta,
Caramuru and Imcopa are the Brazilian suppliers used
All palm oil used certified according to Round Table on Sustainable Palm Oil
Yes (in Newfoundland, the only region where we used a small amount of
palm oil)
FIGURE 2.60
VOLUME OF MARINE INGREDIENTS
Volume of marine ingredients
(tonnes)
Forage fish
2022
Forage fish
2023
Trimmings 2022
Trimmings 2023
Total 2022
Total 2023
Fish meal
Fish oil
10 107
8 280
9 817
5 839
5 394
5 316
6 777
5 771
15 501
13 596
16 594
11 610
Trimmings also referred to as co-products, are viable cut-offs (e.g. entrails, fins, scales, heads, and tails) from fishing-processing activities commonly not used for other consumption.
Trimmings are often ground and dried into fishmeal.
Marine feed ingredients should come from sustainable sources. An overview of marine raw materials in our feed, including species,
country of origin and certification of each raw material, is available here.
PART 02 - OUR OPERATIONAL RESULTS
51
PEOPLE
Every single day, whether it is sunny, stormy or freezing cold, our fantastic
employees are out there working hard in the hatcheries, on the farms or at the
harvesting plants. Their passion and dedication drive Grieg Seafood forward.
OUR COLLEAGUES
Grieg Seafood consists of people with different backgrounds,
The Grieg Seafood workplace is a secure environment for all
genders, experiences, expertise and age. We have talented
employees, and initiatives like this will only further emphasize
employees range from teenage apprentices to people who will
the core values of Grieg Seafood, which include openness,
soon retire. We have people fresh from university, people with
ambition, and concern for others..
advanced degrees, people who have worked in the industry for
multiple years, and people who have grown up with salmon and
In 2023, Grieg Seafood has implemented several measures to
are experts in their field through dedication and experience. You
enhance the gender balance. The appointment of women to
can read more about our talented employees and their stories on
fill vacant management roles, drawing from both internal and
our website.
DIVERSITY
Diversity and equality are among the most essential aspects of
external candidates, and the appointment of another female
executive management team member are all included in this
category. In 2023, women made up 27% of our newly hired staff.
We undertake a yearly evaluation of the salaries and benefits
living our culture. We are dedicated to being an employer that
provided to our employees, and we benchmark our pay using
provides equal opportunities. Our varied workforce consists of
the Kornferry technique. The Kornferry methodology is one of
837 (ex contractors) employees representing 30 different nations,
the tools we utilize to maintain gender equity and to ensure fair,
with a gender balance of 235 women (28%) and 602 men (72%).
competitive and living wages for our employees.
In 2023, we placed a particular emphasis on the development of
We select and appoint the best-suited individuals for a position
female leaders and potential leaders. This was accomplished
based on their abilities, qualifications, and aptitudes, including
by completing the international program FiftyFifty, and other
everyone from aquaculture technicians to regional directors. We
initiatives focused on the local level. FifityFifty is a think tank and
continue to place a significant emphasis on recruitment. Being an
networking collaboration amongst various companies, aiming
attractive employer and being visible in the areas where the next
to encourage the development of individual projects within
generation of aquaculture talent comes from are both essential
those organizations. A greater gender balance in managerial
components of our recruitment approach.
positions in Norway and around the world is the target of the
FiftyFifty initiative, which aims to provide a boost to focus on and
We have prioritized ensuring that all of our employees,
contribute to this goal. The concluding meeting was held in the
regardless of ethnicity or background, are afforded the same
Munch Museum in Oslo, Norway, and was attended by both our
opportunities, rights, and respect. Strategies that compensate
Chief Executive Officer and the attendees.
for historical and societal barriers prohibiting women and
men from working on a level playing field must also be readily
«It is not counting the numbers of women employed that is
available to guarantee fairness. There is a direct correlation
important; it's all about that women thrive and have equal
between gender equity and gender equality, characterized by
opportunities as their male colleagues in Grieg Seafood,» says
equal rights, responsibilities, and opportunities for men and
Andreas Kvame, CEO.
women. Our digital coaching program was maintained for all
our employees, regardless of gender, in 2023. Under the terms
of this program, participants would have the opportunity to get
one-on-one instruction from a native speaker for six months
to improve their language skills. The program was one of the
projects we launched after COVID to grow our staff professionally
and personally, and it has been met with positive feedback from
those who participated.
LEARN MORE ON OUR WEBSITE
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Our policy and grievance mechanisms for human rights
Human rights in our operations and value chain
Our policy for diversity
Our policy for gender equity
Embracing diversity
Health and safety principles
HSE policy
PART 02 - OUR OPERATIONAL RESULTS
52
HEALTH AND SAFETY
In 2023, we once again conducted our now annual Great Place to
HUMAN RIGHTS
We are committed to respecting fundamental rights in our
Work survey, and we are happy to say we kept our certification.
operations, our value chain, and in the communities where we
Not only does this confirm that our employees feel that Grieg
operate. In 2022, the Norwegian Transparency Act entered into
Seafood is a great place to work, they also think it is a safe
force. Grieg Seafood operate in compliance with the Norwegian
place to work. We have a zero accidents vision and encourage
Transparency Act and is committed to following the UN Guiding
our employees to report all deviations in accordance with our
Principles on Business and Human Rights (UNGPs). In the end of
recently published health and safety global policy. All employees
June 2023 we published our first human rights progress report.
receive health and safety training when they join us, and are
The report provides an account of the due diligence conducted,
required to re-take the courses regularly. Employees have
findings and actions, in line with the Norwegian Transparency
the possibility to actively participate in and contribute to the
Act. We will provide status on our efforts to ensure respect for
development of their workplace safety through their employee
human rights each year.
representative. External health services provide health checks
and advice to employees. In our Norwegian regions they are
Based on this year’s assessment, the risk of human rights
represented on our Health and Safety committees. We provide
breaches connected to our own operations is evaluated as
a health-plan for employees, ranging from dental and medical
low. However, the human rights risk connected to our value
to counselling depending on the region, and we offer a variety
chain is considered high. Both upstream and downstream, our
of health programs to the employees (competitions, gym
value chains are linked to high-risk geographies and high-risk
membership). We have a strong health and safety program to
industries. There is generally low transparency and traceability in
ensure our workers are protected and risks are minimized. This
these value chains, as many of them are linked with the trading of
includes adhering to local laws and legislation regarding working
global commodities, where transparency and traceability can be
hours in all our regions. We will never compromise on the health
a huge challenge. Read more about how we have started to take
and safety of our employees. Through our Supplier Code of
action on prioritized areas in our value chain here.
Conduct, we expect the same from our suppliers.
OUR RESULTS
FIGURE 2.61
UNIONIZED EMPLOYEES (%) AT YEAR-END 2023
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Share
28%
48%
n/a
n/a
n/a
n/a
We accept and welcome labor union membership among employees. Grieg Seafood has established a good, collaborative relationship with our union representatives. This collaboration
extends beyond periodic salary negotiation to a variety of internal improvement projects.
The numbers reflect membership of the United Federation of Trade Unions (Fellesforbundet) and The Norwegian Food and Allied Workers Union (NNN), the largest labor unions
in our industry. Due to privacy and security laws, we do not have access to data on all types of memberships, such as associations of professionals and graduates. It is therefore
presumed that the actual number of unionized employees is higher than depicted. We also accept and welcome collective bargaining and freedom of association, by union or employee
representation. Any employee working in the same jobs as those covered by either of the above will receive the same working conditions and terms.
FIGURE 2.62
CODE OF CONDUCT PROGRAM
FIGURE 2.63
HARASSMENT INCIDENTS
FIGURE 2.64
WHISTLEBLOWER CASES
1
One case was reported through our whistle blower
channel in 2023. One of our employees claimed
unlawful terminations and work-related concerns. The
claim was closed after an external investigation.
All employees have both the right and a responsibility
to raise concerns. Such concerns should be reported
immediately to line management, Group Management
or the CHRO, or through our external whistleblower
channel. The whistle blower channel is also available
for external stakeholders through our website. All
notifications through our external whistleblower
channel are handled in a professional manner by
EY. Depending on the content of the notification, it
is logged either as an issue of information or as a
whistleblower concern to be followed up. The CHRO
receives a summary report from the operator of the
whistleblower channel, and all reported incidents
are reported to the CEO and Board of Directors.
All reported incidents are investigated. Unless the
whistleblower has chosen to remain anonymous, they
will be kept adequately informed about the process and
its outcome. We prohibit any retaliation against anyone
for raising or helping to address a concern about
violation of our policies.
Our Supplier Code of Conduct requires suppliers
to provide a safe and healthy environment for their
workers and contractors, and minimize workers´
exposure to potential safety hazards. Furthermore,
we expect our suppliers to adhere to all applicable
laws and regulations. Our suppliers can also use our
whistleblower channel to report negative occupational
health and safety impacts in business relationships.
0
No harassment incidents were reported in 2023. Grieg
Seafood has zero tolerance for misconduct in the
workplace, and all reports of harassment are dealt
with in accordance with established procedures. We
do however, for reasons of privacy protection, not
comment specifically on any reported incidents.
87%
87% (726) of our 837 employees (ex contractors) have
completed our Code of Conduct program, broken
down by 141 (19%) permanent and 16 (2%) temporary
employees from Rogaland, 247 (34%) permanent and
27 (4%) temporary employees from Finnmark, 78
(11%) permanent and 1 (0.1%) temporary employees
from Newfoundland, 125 (17%) permanent and 2
(0.3%) temporary employees from BC. Lastly, 84 (12%)
permanent and 5 (1%) temporary employees from
ASA and Sales & Market. Eight out of nine (89%) of
our Group Executive Team have completed the Code
of Conduct program, all from Norway. There has
been no changes to the Group policies or similar that
required the Boards supervision in the reporting year,
hence none of the members of the Board of Directors
from Norway received any particular Code of Conduct
communication or training in 2023.
Our Code of conduct program involves presentation
and training on all of our principles. The Code of
Conduct program is required to be completed every
second year by all our employees
FIGURE 2.65
HUMAN RIGHTS TRAINING
FIGURE 2.66
NON-DISCRIMINATION TRAINING
88%
52%
In 2023, 739 employees (88%) were given human rights
training. This includes, but is not limited to, our Code
of Conduct.
Overall, 52% of our 837 employees (ex contractors)
have completed a non-discrimination training course.
46% of our employees completed the course in 2023.
This does not include our Code of Conduct program,
which also includes a non-discrimination section.
PART 02 - OUR OPERATIONAL RESULTS
53
FIGURE 2.67
GENDER BALANCE AT YEAR-END 2023
Female
Male
ROGALAND
23%
77%
FINNMARK
25%
75%
BRITISH COLUMBIA
28%
72%
NEWFOUNDLAND
30%
70%
ASA
40%
60%
SALES & MARKET
50%
50%
0%
100%
At year-end 2023, the Grieg Seafood Group had 837 employees (235 women and 602 men), including full-time and temporary workers but excluding contractors. Hence, women
make up 28% of the workforce, while 72% are men. Management and support functions at Grieg Seafood ASA and the Sales & Market teams have the highest proportion of female
employees.
Employee data is registered in a dedicated HR database. Only HR personnel are allowed access to register employee data, which is reviewed regularly to ensure its continued quality.
The data provided is collected from the HR database in head-count at the end of the reporting period.
FIGURE 2.68
GREAT PLACE TO WORK
74%
FIGURE 2.69
APPRENTICESHIP PARTICIPATION
AT YEAR-END
FIGURE 2.70
APPRENTICESHIP ACHIEVEMENTS
27
10
Great Place to Work assesses and evaluates
organizations and the practices that underpin
workplace culture, based on the experience of
employees. In 2023, we took part in the Great Place
to Work survey for the sixth time in Norway, and for
the fifth time globally. We are proud to announce that
all our regions maintained the Great Place to Work
certification in 2023. The Group achieved a total score
of 74%, with 79% stating this is a great place to work.
The score is above average and shows that Grieg
Seafood is among the best companies to work for.
With a high participation rate, this certification is an
enormous credit to the employees and their hard work
and loyalty.
At year-end 2023, a total of 27 employees were
participating in an apprenticeship: 16 in Rogaland and
11 in Finnmark. British Columbia and Newfoundland
did not have any apprentices at year-end 2023.
In 2023, a total of ten employees received their final
certificate of apprenticeship: four in Rogaland, four in
Finnmark, and two in Newfoundland.
In cooperation with the North Island College and
Fleming College, Grieg Seafood British Columbia has
established the “Seawater Technician Advancement
Program” (TAP). The program provides mandatory
additional training for technicians, as well as further
training for higher positions within aquaculture. The
program has so far been a success.
PART 02 - OUR OPERATIONAL RESULTS
54
FIGURE 2.71
THE WORKFORCE AT YEAR-END
Permanent
Temporary
Contractor
FIGURE 2.73
TURNOVER RATE
100%
2023
2022
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
ASA
SALES & MARKET
0%
84%
81%
97%
97%
91%
88%
13%
4%
16%
3%
2%
1%
3%
0%
2%
7%
9%
4%
100%
The compiled data is reported in head-count as of 31 December 2023. Overall, 88% (752 of 858) of our workers were permanent employees in 2023 (incl. contractors). We had some
temporary employees, particularly seasonal workers in our processing facilities and apprentices at our farms. Most of our apprentices are offered a permanent position with us after
their apprenticeship is over. Contractors are mainly used in Norway during peak periods of harvesting, or in office roles, providing regular services as needed (mostly IT-related work).
15%
11%
16%
17%
Employee data is registered in a dedicated HR database. Only HR personnel are allowed access to register employee data, which is reviewed regularly to ensure its continued quality.
40%
42%
32%
27%
23%
20%
14%
9%
5%
5%
0%
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEWFOUNDLAND
ASA
SALES & MARKET
GROUP
These figures are calculated based on the total number of permanent employees since it is only these employees who are meant to stay with the company permanently. Temporary
employees and contractors have been excluded from these figures. As per GRI definition, employee turnover includes all employees who leave the organization voluntarily or due to
dismissal, retirement, or death in service.
Turnover has overall decreased in 2023 compared to 2022. Grieg Seafood Newfoundland experienced a lower turnover in 2023 compared to 2022, but still high due to a competitive
market. We expect more stability in the future. The turnover in BC has been high, which has been common through all industries in this region, as it was challenging to attract
candidates in a competitive market. We continue to support our good relationships with First Nations and local communities to help attract potential employees from the region. We
also work closely with training institutions to offer employment to applicants that have chosen aquaculture as their desired career path. Through our commitment to supporting the
Truth and Reconciliation process in Canada, employment priority goes to First Nations candidates who want to work in their traditional territories. As a result, we are pleased to see
the turnover decreasing in BC in 2023 compared to 2022.
FIGURE 2.72
THE WORKFORCE AT YEAR-END
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Total
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Male
Permanent
Temporary
Contractor
Total
Full-time
Part-time
Full-time
Part-time
Full-time
Part-time
26
105
55
191
39
109
31
71
17
24
25
21
9
17
5
0
2
0
1
0
0
1
1
2
4
16
7
27
1
1
0
3
0
0
0
2
2
2
8
7
1
0
0
0
0
1
1
2
1
4
1
4
0
0
0
0
0
1
1
1
714
38
61
24
13
0
2
0
3
0
1
0
0
0
2
0
0
8
42
146
76
232
43
111
32
74
17
29
28
28
858
PART 02 - OUR OPERATIONAL RESULTS
55
FIGURE 2.74
FATALITIES
0
We had zero fatalities in 2023.
FIGURE 2.75
ABSENCE RATE
Short-term 2023
Short-term 2022
Target
Long-term 2023
Long-term 2022
In Finnmark, Rogaland, Sales & Market, British Columbia and Newfoundland, the absence rate has decreased compared to the year before, while in ASA, the absence rate increased.
The absence rate in Finnmark is above our target of 4.5%, mainly due to short-term absence. We continue to monitor the situation and implement actions to reduce the absence rate.
In Finnmark, we have an ongoing process related to facilitating reduced work assignments and we have introduced training in absence follow-up for all employees. All initiatives in this
area are implemented in consultation with employee representatives.
PART 02 - OUR OPERATIONAL RESULTS
56
FIGURE 2.76
SAFETY INDICATORS
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market *
Hours worked
(incl. overtime)
Total work-related
injuries
Rate of work-related
injuries**
High-consequence
work-related injuries
Rate of High-consequence
work-related injuries**
249 508
400 922
246 844
224 244
69 095
88 327
9
18
24
4
0
0
36
45
97
18
0
0
0
0
0
0
0
0
0
0
0
0
0
0
* Estimate based on number of employees and general annual working hours.
**Rate of work-related injuries divided by the total number of hours worked (incl. overtime), multiplied by 1 000 000. Permanent and temporary employees are included in our incident
data. Information on contractors is not currently available.
100% of our (858) employees are covered by health and safety systems, including contractors. We use occupational health and safety systems and standards in line with local
regulations in each country. All of our health and safety procedures are internally audited and reviewed by management. As a part of our ASC, Global G.A.P and BAP certifications and
ongoing certification processes, all of our health and safety management procedures are certified by an external party. The administrative support department are not directly covered
by an occupational health and safety management system, but are subject to occupational health services and represented by a a staff-elected safety representative.
Health and safety incidents are registered in our systems and reviewed as part of our monthly HSE meetings. Our occupational health services provider helps to map and assess the
risk of the work environment, including physical, organizational and psychosocial factors. Job risks in each department are formally evaluated and categorized using a risk matrix. Job
hazard assessments are also carried out for non-routine jobs.
Injuries are caused mainly by being struck by objects, handling equipment, crushing, cuts, slips, and falls. Risk assessments show that high-consequence injuries derive from being
struck by an object, crushing and cuts. We did not have any high-consequence injuries in 2023.
All our staff have the right to stop any type of work or task if they feel unsafe or that they are not competent enough to carry out their duties. These routines are established in all
our regions and all new employees are given the information about how these systems work and they can also report anonymously through their union representative, employee
representative or our whistleblowing channel for major issues which is handled by an external partner EY if they feel anything is unsafe or a hazard in their work environment. We have
a "no reprisal" policy when it comes to reporting health and safety issues. This is described in our Code of Conduct.
Our improvement and preventative initiatives are based on thorough evaluation of all accidents and near misses that are reported in our deviation system and are designed to reduce
risk and prevent the reoccurrence of unwanted incidents. Mitigating measures may, for example, include servicing machinery, ordering new equipment, training employees, or
changes in procedures and instructions.
We always use required Personal Protective Equipment (PPE) to do our job as safely as possible, and our operations pose no known ill-health risks.
FIGURE 2.77
H1-FACTOR/LTIR
Rogaland
Finnmark
British Columbia
Newfoundland
ASA
Sales & Market
Group
H1-factor/LTIR *
Absence rate
2019
2020
2021
2022
2023
2019
2020
2021
2022
15
22
35
9
28
36
n/a
n/a
0
0
0
0
42
22
6
5
0
0
25
21
9
0
0
0
32
22
8
9
0
0
3.5%
4.9%
2.0%
n/a
0.3%
0.5%
3.1%
5.6%
6.8%
n/a
1.1%
3.0%
8.7%
5.6%
1.3%
0.5%
0.0%
0.9% **
n/a
24
15.97
13
16
3.2% **
4.9% **
5.0% **
5.6%
9.7%
6.4%
1.6%
0.4%
2.2%
6.0%
2023
3.9%
8.0%
3.9%
1.4%
0.7%
0.6%
4.5%
* H1-factor/LTIR: number of lost-time injuries divided by the total number of hours worked (incl. overtime from and including 2023), multiplied by 1 000 000. Permanent and temporary
employees are included in our incident data. Information on contractors is not currently available.
** Including Shetland.
On a group level, the number of LTI incidents in 2023 has increased compared to 2022, mainly due to an increase in the more common type of work injuries. As a result of this we will
have an increased focus on procedures and handling of equipment in order to reduce these incidents going forward.
In Grieg Seafood BC, we have been working for several years to improve our openness and reporting in order to create a more mature safety performance culture and as a result Grieg
Seafood BC are OSSE certfifed. Our ultimate goal is that people both feel and are safe, that we have an open reporting culture and that HSE always are at the top of our agenda. In our
quarterly Business Reviews with our regions, we always start the meetings by going through the HSE statistics. We conduct audits and inspections, execute both safety action plans
and safety observations, and, if possible, assess the quality of observations and how actions are closed. We also conduct safety training and safety meetings.
In order to avoid any under-reporting of incidents, no LTIR target has been defined.
PART 02 - OUR OPERATIONAL RESULTS
57
OUR
FINANCIAL
RESULTS
PART 03
BOARD OF DIRECTORS’ REPORT
CORPORATE GOVERNANCE
GRIEG SEAFOOD GROUP ACCOUNTS
GRIEG SEAFOOD ASA ACCOUNTS
AUDITOR’S REPORT
ALTERNATIVE PERFORMANCE MEASURES
60
75
84
123
139
142
BOARD OF DIRECTORS
Our Board of Directors will provide leadership to
the company and deliver shareholder value over the
long term.
Find the presentation of our Board of Directors here.
GROUP EXECUTIVE
MANAGEMENT TEAM
Our executive management team is responsible for
overseeing the Group’s day-to-day operations and
working to realize our vision, values and targets.
Find the presentation of our management team here.
PART 03 - OUR FINANCIAL RESULTS
59
BOARD OF
DIRECTORS’
REPORT
BOARD OF DIRECTORS’ REPORT
GRIEG SEAFOOD’S VISION AND AMBITIONS
OPERATIONAL REVIEW
FINANCIAL PERFORMANCE GROUP FINANCIAL STATEMENT
FINANCIAL PERFORMANCE GRIEG SEAFOOD ASA
RISK AND RISK MANAGEMENT
CORPORATE SOCIAL RESPONSIBILITIES
EVENTS AFTER THE REPORTING DATE
OUTLOOK
GOING CONCERN
STATEMENT FROM THE BOARD OF DIRECTORS AND THE CEO
61
63
65
69
70
72
73
73
74
74
MAIN
ACHIEVEMENTS
GRIEG SEAFOOD’S VISION AND AMBITIONS
The Grieg Seafood Group is one of the world's leading salmon
farmers. The Group has licenses for seawater farming and land-
based smolt production in Finnmark and Rogaland in Norway,
and British Columbia and Newfoundland in Canada.
The Group's vision "Rooted in nature – farming the ocean for
a better future", represents how the Group intends to make a
difference and what it aims to accomplish. It also encompasses
the foundation for the Group's operational development – a
healthy ocean, sustainable food, profitable growth and innovation,
good jobs for everyone, and local value creation. With its business
strategy, the Group aims to increase the harvest volume to
120 000-135 000 tonnes at a competitive cost level, and to evolve
from purely a commodity supplier to an innovation partner for
selected customers. Sustainable farming practices are the
foundation of Grieg Seafood’s operations. Achieving the lowest
possible environmental impact and the best possible fish welfare
are both an ethical responsibility and a prerequisite for long-
term profitability. To achieve sustainable growth and improve
competitiveness, the Group focuses on reducing the time fish
spend at sea by stocking larger smolt to sea, improving fish
health and welfare, and providing digital decision-making support
to its farmers.
TARGETS AND ACHIEVEMENTS
Global growth, value chain repositioning and cost improvement
are the key areas of the Group’s business strategy. Despite
challenges in some areas during 2023, the Board wants
to recognize the hard work, passion and dedication of the
employees in all regions. With the improvement measures that
have been implemented throughout the year, the Group moves
forward with expectations of improved results in 2024.
As part of the strategy, the Shetland operations were sold in
2021 to concentrate the Group’s focus on the regions with the
greatest potential for profitable growth - Norway and Canada. An
important project for Grieg Seafood has been the development of
Grieg Seafood Newfoundland, where salmon was transferred to
the sea for the first time in 2022 and harvesting started towards
the end of 2023.
The Group originally estimated a total harvest volume of 87 000
tonnes in 2023. The actual harvest volume was impacted by
reduced growth at sea due to biological challenges, mainly in
Finnmark, and came to 72 015 tonnes GWT in 2023. The market
demand for farmed salmon both in the retail and HoReCa sectors
continued strong in 2023. The average NQSALMON price for
2023 came to NOK 92.3 per kg, while Urner Barry (Seattle West
Coast, fresh, whole fish) came to NOK 84.7 per kg in 2023. Weak
biological performance in Finnmark mainly due to the rarely
occurring parasite Spironucleus Salmonicida (Spiro) that led to
reduced survival and reduced growth in sea put pressure on both
the farming cost and price realization from this region. Measures
have been taken to address the challenges both in the short and
medium term.
• Harvested volume of 72 015 tonnes
• Operational EBIT of NOK 780 million, with Operational EBIT/kg of NOK 10.8
• Net profit after tax of NOK 560 million and earnings per share equal to NOK 5.0
• Salmon market remained strong
• Results impacted by historical biological events
• Milestone achieved with first harvest ever in Newfoundland
• Improved processing capacity via partnerships and expanded availability of Value-Added Products (VAP)
• Approved a NOK 130 million investment in a secondary processing facility with a capacity of at least 10 000 tonnes at Oslo
airport
• Identified initiatives to reduce costs by NOK 150 million over the next two years as part of the ongoing improvement
program
• In the process of identifying long-term partners for the development of the Canadian farming operations
• Continued focus on sustainable farming certification with 34 out of 40 eligible sites ASC certified, representing 81% of the
harvested volume in 2023
• Dividend proposal of NOK 1.75 per share, subject to approval by the Annual General Meeting in June 2024
• Ranked third by the Coller FAIRR Protein Producer Index, acknowledging Grieg Seafood as one of the world’s top
sustainable protein producers
• Received a Leadership (A-) score from CDP for transparency and actions on climate change risks, reinforcing the Group’s
environmental commitment
FIGURE 3.1
HARVEST VOLUME (1 000 TONNES GWT)
90
80
70
60
50
40
30
20
10
0
2019
2020
2021
2022
2023
PART 03 - OUR FINANCIAL RESULTS
61
The Group aims to be cost competitive. The industry experienced
3nd on the Coller FAIRR Index, as one of the world’s most-
feed ingredients in order to grow sustainably. Grieg Seafood has
to secure the water intake to the freshwater facility in Adamselv.
general cost inflation during 2022, including a sharp rise in feed
sustainable protein producers. Grieg Seafood also received the
identified and mitigated the most material risks related to feed
Grieg Seafood also participates in a project with academia to
prices, which has driven up the farming cost in all regions in 2023
Leadership (A-) score from the CDP for its transparent reporting
ingredients, overfishing and deforestation. To ensure that feed
investigate and learn more about Spiro. Towards year end 2023,
as the fish has been harvested. In addition, biological challenges
and actions related to climate change.
ingredients does not contribute to overfishing and deforestation,
construction of a new 3 000 tonnes capacity post-smolt unit in
put pressure on the farming cost, particularly in Finnmark due to
Grieg Seafood requires recognized certification of its high-risk
Finnmark started, where the first smolt will be transferred to sea
the impact from Spiro.
The Group has climate reduction targets approved by the Science
ingredients. Fish meal and fish oil from fisheries and Brazilian
in 2026. In general, it is expected that post-smolt will improve
Biological control is the main cost driver and the primary
Based Target initiative (SBTi), with the aim of reducing carbon
soy and palm oil are identified as high-risk ingredients. Grieg
fish health and welfare, as it provides better control of the fish’s
operational focus area in the farming regions. The Group has
emissions by 35% by 2030 and 100% by 2050. In 2023, the Group
Seafood has been acknowledged by CDP Forest with a B-score
environment for a longer period of time. Post-smolt makes the
implemented several cost improvement initiatives, in the area
increased total emissions by 9% compared to the year before.
for its work against deforestation related to soy.
fish more robust before they are transferred to the sea farms,
of research and development (R&D) and the utilization of new
The increase is mainly attributable to an increase in the emission
and reduces their exposure to seaborne biological risks. The
technologies in addition to cost saving program, which, combined
factors from feed in Scope 3, operational expansion and harvest
Aquaculture Stewardship Council (ASC) certification is an
Group’s post-smolt strategy in Rogaland has provided promising
with a higher harvested volume, are expected to reduce or
in Newfoundland, and purchase and distribution of a larger
important objective for the Group, as it provides the market with
results so far. Other initiatives to improve fish health and welfare
stabilize the farming cost.
volume of external fish compared to previous years. Despite
a substantial increase in the Newfoundland region following
assurance of responsible operations and production of high-
include the selection of roe with specific qualities related to sea
quality seafood certified to the highest social and environmental
lice and diseases, feed customized for the various stages of the
Creating shareholder value is a prerequisite for company growth
successful harvesting, the Group has experienced reduction in
standards. As at year-end, 81% of the Group’s harvested volume
salmon’s lifecycle, and vaccinations to immunize against specific
and survival, and Return on Capital Employed (ROCE) is the
its other operating regions. The absolute Scope 1 greenhouse
for 2023 was ASC certified. The Group aims to continue to certify
diseases.
Group’s ultimate financial performance indicator (see Alternative
gas (direct emissions from company-owned and controlled
sites.
Performance Measures for definition). The ROCE for 2023
resources) and Scope 2 (indirect emissions from the generation
Grieg Seafood aims to reduce the overall use of medical sea lice
ended at 7%, compared to the ROCE target of 12% per year. The
of purchased energy) emissions increased by 3% in 2023
Production and harvest volumes depend on the number of smolt
treatments based on efforts to use targeted preventive methods,
result was impacted mainly by weak biological performance in
compared to 2022, while harvest volume decreased by 15% due
transferred to the sea, and how well that fish performs in terms
such as sea lice skirts and cleaner fish (Rogaland only). Grieg
Finnmark.
The sustainability scoreboard includes some of the key
to biological challenges and focus on growing biomass in 2023.
Measured as kilograms of C02 equivalents per tonne harvested,
emissions increased by 21%. Scope 3 emissions (emissions that
of growth and survival. By effectively preventing and combating
Seafood BC uses a combination of a barrier system between the
sea lice and health issues, and by understanding the salmon’s
farmed salmon and the environment and the latest mechanical
behavior, the Group’s farming regions have worked continuously
sea lice removal tool to keep sea lice levels down. The Group
performance indicators (KPIs) for the Group. Sustainability
occur upstream and downstream in the value chain) accounted
to improve survival and growth rates. Grieg Seafood targeted a
also aims to avoid use of antibiotics when possible, and use of
and financial results go hand in hand. Good financial results
for 92% of total emissions in 2023. Even though farmed Atlantic
survival rate of 95% for 2023. Only Newfoundland reached this
antibiotics decreased compared to 2022. In Norway, effective
are needed to develop the Group's operations sustainably, and
salmon already has a low carbon footprint, more work needs to
target in 2023. The survival rate in Rogaland increased from 92%
vaccines have reduced the use of antibiotics significantly. Limited
sustainable operations are needed to safeguard long-term
be done to reduce the impact from the global food system.
in 2022 to 94% in 2023, Finnmark came to 92% up from 91% in
amounts have been used to secure the welfare of the fish when
financial results and performance, and create or maintain value
2022, while BC was stable at 91%. The main biological challenge
there are no other alternative treatments, which was the case in
for all stakeholders. That is why sustainable farming practices
Salmon feed is the most important and cost-intensive input factor
in Finnmark in 2023 has been Spiro. To mitigate Spiro, Grieg
Finnmark and BC in 2023.
form the very foundation of all areas of Grieg Seafood’s strategy.
in salmon farming. The industry needs to develop new
Seafood has invested NOK 70 million in UV treatment facilities
The Board was pleased to see that Grieg Seafood was rated
FIGURE 3.2
FARMING COST PER KG
Rogaland (NOK/kg)
Finnmark (NOK/kg)
British Columbia (CAD/kg)
FIGURE 3.3
ROCE AND OPERATIONAL EBIT/KG
ROCE
ROCE target (12%)
Operational EBIT/kg
/
g
k
K
O
N
80.0
70.0
60.0
50.0
40.0
30.0
C
A
D
k
g
/
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0
30%
20%
E
C
O
R
10%
0%
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
30
20
10
0
O
p
e
r
a
t
i
o
n
a
l
I
E
B
T
k
g
/
Newfoundland not included, as the farming cost in 2023 is not representative as we are scaling up our production in the region, which impact
the cost level of the first harvested generation.
Rogaland (NOK/kg)
Finnmark (NOK/kg)
British Columbia (CAD/kg)
ROCE
ROCE target (12%)
Operational EBIT/kg
PART 03 - OUR FINANCIAL RESULTS
62
Diseases, winter ulcers and other biological issues can affect the
The Group conducted the global Great Place to Work survey also
quality of the salmon. A superior quality salmon gives a positive
in 2023. The Board is proud to report that all regions received
OPERATIONAL REVIEW
second half of 2023. ISA led to early harvest on some sites, which
affected the biomass growth throughout the year.The 12-month
overall impression, with good meat quality and no external
their Great Place to Work certification. The total score of 74% for
In general, both freshwater and seawater production through
rolling survival rate for 2023 improved from 92% in 2022 to 94%
damage or faults, while downgraded salmon has external and/
the Group was very satisfactory, proving that Grieg Seafood is
the year was good, however with some challenges to freshwater
in 2023.
or internal faults or damage, and obtains a lower price in the
among the best companies to work for.
production in BC and seawater production in Finnmark impacting
market. The Group aims for 93% of its salmon to be graded
the Operational EBIT. For further details, see the separate
The farming cost ended at NOK 60.4 per kg in 2023, up NOK 12.2
as superior quality. Biological issues such as winter ulcers,
Grieg Seafood operates in many rural communities, and is
regional chapters in Part 2 Profit & Innovation.
per kg from NOK 48.2 per kg in 2022. The industry experienced a
Spiro and string jellyfish negatively impacted the quality of the
grateful for their permission to farm salmon in their inlets and
general rise in costs in 2022, in particular in feed prices with an
fish harvested in 2023, and only Newfoundland reached this
fjords. The Group aims to create local jobs and opportunities,
A summary for the farming regions in Rogaland, Finnmark,
increase close to 40%, which has continued to impact the farming
target. Finnmark was particularly hit hard, while BC had an
use local suppliers, and engage in and support various local
British Columbia, Newfoundland and the sales organization
cost in 2023 until the generation of impacted fish is harvested.
improvement in quality share compared to 2022. The Group’s
projects and activities. Communities’ social license to operate
follows below.
post-smolt program, with reduced exposure to biological
is essential for sustainable growth. In British Columbia, Grieg
challenges in the sea, is expected to contribute to an increased
Seafood is farming in areas that belong to indigenous peoples,
superior share.
while Finnmark has been home to the Sami people for millennia.
Grieg Seafood recognizes that these groups have special rights,
Unfortunately, the Group reported two escape incidents in 2023,
as acknowledged in the United Nations Declaration on the Rights
ROGALAND
Grieg Seafood Rogaland harvested a volume of 25 980 tonnes
compared to NOK 755 million in 2022. This corresponds to NOK
28.3 per kg in 2023, up NOK 1.8 per kg from NOK 26.6 per kg in
Operational EBIT for the year ended at NOK 736 million,
in 2023, a decrease of 8% compared to the 28 387 tonnes
2022.
harvested in 2022. Sales revenues amounted to NOK 2 305
in British Columbia. Both incidents happened during transfer
of Indigenous Peoples (UNDRIP), and takes particular care to
million, compared to NOK 2 124 million in 2022. The increase
Read more about Grieg Seafood Rogaland’s operational priorities
of fish, and due to human errors. Management has taken steps
avoid infringing them.
was mainly driven by the strong market in 2023. In 2023, the
in the regional chapter in Part 2 Profit & Innovation.
to prevent similar incident from happening again. In addition
to ensuring that farms have high technical standards and that
procedures are being followed, all employees regularly attend
courses on escape prevention.
The Group does not compromise on occupational health and
safety, and follows up accidents and absence rates. The Group
had no high-consequence work-related injuries in 2023. The
Board is pleased to see that the Group reached the absence rate
target below 4.5% for most regions, expect in Grieg Seafood
Finnmark. Management has routines in place to monitor and
follow up absence.
price achievement came to NOK 88.7 per kg, up NOK 13.9 per kg
from NOK 74.8 per kg in 2022. Higher market prices were offset
by the sale of 17% of the volume under fixed-price contracts, in
addition to quality downgrades. The share of superior quality fish
FIGURE 3.6
ROGALAND OPERATIONAL EBIT/KG YEAR-OVER-YEAR
Source: Group Accounts Note 5
decreased from 84% in 2022 to 79% in 2023.
13.9
The freshwater production has been good in 2023. During the
year, close to eight million smolt were transferred to the sea,
with an average weight of 460 grams. Overall, the underlying
seawater production was good during the year, despite some
challenges related to Infectious Salmon Anemia (ISA) and winter
ulcers during the first half of the year and gill disease during the
26.6
28.3
-12.2
OpEBIT/kg
2022
Sales revenue/
kg
Farming cost/kg
OpEBIT/kg
2023
FIGURE 3.4
SURVIVAL RATE AT SEA
FIGURE 3.5
SUPERIOR SHARE OF SALMON
Rogaland
Finnmark
British Columbia
Newfoundland
Target (93%)
Rogaland
Finnmark
British Columbia
Newfoundland
Target (93%)
Rogaland
Finnmark
British Columbia
Newfoundland
Target (95%)
Rogaland
Finnmark
British Columbia
Newfoundland
Target (93%)
100%
90%
80%
100%
80%
60%
40%
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Survival rate calculated as a rolling twelve month survival rate.
PART 03 - OUR FINANCIAL RESULTS
63
FINNMARK
Grieg Seafood Finnmark harvested a volume of 25 170 tonnes
in 2023, a decrease of 30% compared to 36 024 tonnes in 2022.
Sales revenues amounted to NOK 1 947 million, a decrease of
26% compared to NOK 2 629 million in 2022. The reduction was
mainly driven by the lower harvest volume. Finnmark achieved an
average price of NOK 77.3 per kg in 2023, up NOK 4.4 per kg from
NOK 73.0 per kg in 2022. The price achieved was significantly
depressed by downgrades, in addition to the sale of 15% of our
volume under fixed-price contracts. The superior quality share
decreased from 86% in 2022 to 58% in 2023 due to impact from
Spiro, winter ulcers and string jellyfish.
Freshwater production at Finnmark’s own facility at Adamselv
was good during the year. A total of 12.2 million smolt, with an
average weight of 210 grams, were transferred to the sea in 2023.
Seawater production has been challenging this year. Spiro, which
was detected in fish from Adamselv in 2022, has continued to
FIGURE 3.7
FINNMARK OPERATIONAL EBIT/KG YEAR-OVER-YEAR
Source: Group Accounts Note 5
FIGURE 3.8
BRITISH COLUMBIA OPERATIONAL EBIT/KG YEAR-OVER-YEAR
Source: Group Accounts Note 5
13.3
1.0
4.4
25.7
13.0
-17.1
SALES & MARKET
Grieg Seafood is on an exciting journey of growth, which
involves building a stronger presence in the market. With a
fully-integrated global sales organization, the Group aims to
optimize biological performance and market timing through
close collaboration between farming and sales, thereby securing
good price achievement. The downstream strategy is based
on strategic partnerships, value added processing and brand
cultivation. While sales currently consist mainly of fresh, head-on
gutted salmon, the target is for Value Added Processing (VAP)
to account for 20-30% share of the harvested volume by 2026.
OpEBIT/kg
2022
Sales revenue/
kg
Farming cost/kg
OpEBIT/kg
2023
OpEBIT/kg
2022
Sales revenue/
kg
Farming cost/kg
OpEBIT/kg
2023
close to key markets and customers in the EU and the USA.
Increasing the VAP share is also an important part of reducing
CO2 emissions.
-19.6
-5.3
To this end, the Group aims to establish processing partners
BRITISH COLUMBIA
Grieg Seafood British Columbia (BC) harvested 17 682 tonnes
NEWFOUNDLAND
Grieg Seafood Newfoundland is a greenfield project acquired
Today, the Group has the successful Skuna Bay brand in the USA,
and aims to develop B2B brands going forward. Key milestones in
impact the seawater production, leading to early harvesting and
in 2023, 13% lower than in 2022 (20 286 tonnes). Harvesting
in 2020. In 2023, an important milestone was reached, when
2023 included a strengthened processing capacity with partners
the culling of fish with sickness signs to protect fish welfare. At
volumes vary significantly every other year in BC due to local
harvesting of the first generation of fish that was transferred
in Norway, Europe and Western Canada and an increasing supply
the end of the year, Finnmark also experienced an increasing
production region arrangements and fewer farms on the West
to sea in 2022 started. The harvest volume came to 3 184
of own VAP products in the European, Asian and the US markets.
impact from string jellyfish and winter ulcers. This has affected
Coast of Vancouver Island compared to the East Coast. As a
tonnes. Sales revenues amounted to NOK 235.7 million and the
5% of the global harvested volume in 2023 was sold as VAP.
the biomass growth. Measures to reduce the impact from winter
consequence, the region's volume varies every other year,
realized price for the year came to NOK 74.0 per kg. The price
ulcers include feed composition and vaccination. String jellyfish
regardless of the underlying biology.
achievement was supported by a favorable superior share of 97%
For more information on the sales organization and the markets,
has been a threat to several fish farmers towards the end of the
in addition to good average harvest weight.
see the Sales & Market chapter in Part 2 Profit & Innovation.
year. The situation is closely monitored to safeguard the welfare
Sales revenues for the year amounted to NOK 1 468 million, a
of the fish. Nevertheless, the 12-month survival rate improved
decrease of 12% compared to NOK 1 665 million in 2022. The
from 91% in 2022 to 92% in 2023, due to better survival of the new
price achievement came to NOK 83.0 per kg in 2023, up NOK
generation. Spiro will impact the production until the generation
1.0 per kg compared to NOK 82.1 per kg in 2022. The price
is completely harvested by Q2 2024.
achievement was positively impacted by an increased share of
superior quality fish, which ended at 90% in 2023 compared to
The farming cost ended at NOK 64.4 per kg in 2023, up NOK
85% in 2022, however, suppressed by lower market prices.
17.1 per kg from NOK 47.3 per kg in 2022. In addition to reduced
survival and early harvest of fish impacted by Spiro, the farming
The freshwater production has been impacted by reduced
Production at the freshwater facility has been on track. The
new generation is healthy and growing well, with high survival
rates. Approximately 2.5 million smolt were transferred from
our freshwater facility to sea during the spring and summer of
2023. The seawater licenses in Newfoundland require use of
sterile all-female salmon in order to eliminate the risk of genetic
pollution of wild Atlantic salmon in case of escape. The fish have
performed well biologically, with a 12-month rolling survival rate
cost was impacted by the general rise in cost during 2022, which
survival during the year due to technical issues and lower quality
at 95% and good growth, and the company has not experienced
applied in particular to feed, whose prices increased by close to
roe, which has impacted the number of smolt transferred to sea
any sea lice or other biological issues during the year.
40%. This impacted the farming cost in 2023, when fish impacted
this year. Seawater production was stable in 2023. The 12-month
by the price increase have been harvested. Additionally, reduced
survival rate remained unchanged from 2022 to 2023 at 91%.
The farming cost (the total cost of producing and harvesting fish)
growth due to the biological challenges increased the economic
Despite seasonal challenges related to sea lice and events of
feed conversion rate (eFCR, a measure of the feed utilization)
low dissolved oxygen, BC managed to stabilize survival due to
from 1.40 in 2022 to 1.48 in 2023.
treatments and the barrier and CO2L flow system.
Operational EBIT for 2023 ended at NOK 327 million, compared to
The farming cost increased from CAD 9.1 per kg (NOK 68.8)
NOK 926 million in 2022, which corresponds to NOK 13.0 per kg
in 2022 to CAD 11.2 per kg (NOK 88.4) in 2023. The increase is
came to CAD 12.1 per kg (NOK NOK 95.9) in 2023. The farming
cost is high due to the low harvest volume and to still being in
a development phase with low capacity utilization. Most of the
production cost has been accounted for as inventory (biological
assets excluding fair value adjustment) in the balance sheet,
although a portion has been expensed directly to the income
in 2023, down NOK 12.7 per kg from NOK 25.7 per kg in 2022.
mainly related to cost inflation on feed and other input factors, in
statement, which totaled NOK 76.4 million (NOK 24.0 per kg) in
addition to the increased costs recognized as abnormal mortality
2023.
Read more about Grieg Seafood Finnmark’s operational priorities
in the income statement.
in the regional chapter in Part 2 Profit & Innovation.
Operational EBIT for 2023 totaled NOK -146.1 million, compared
Operational EBIT for the year ended at NOK -94 million,
to NOK -114.7 million in 2022.
compared to NOK 270 million in 2022, which corresponds to NOK
-5.3 per kg in 2023, down NOK 18.6 per kg from NOK 13.3 per kg
in 2022.
Read more about Grieg Seafood British Columbia’s operational
priorities in the regional chapter in Part 2 Profit & Innovation.
Read more about Grieg Seafood Newfoundland in the regional
chapter in Part 2 Profit & Innovation.
PART 03 - OUR FINANCIAL RESULTS
64
FINANCIAL PERFORMANCE
GROUP FINANCIAL STATEMENTS
The consolidated financial statements have been prepared in
accordance with IFRS® Accounting Standards as adopted by the
EU.
PROFIT AND LOSS
SALES REVENUE AND HARVESTED VOLUME
The Group harvested 72 015 tonnes GWT in 2023, down 15%
Market demand remained strong in 2023. Relative to 2022, it is
estimated by Kontali Analyse that the global volume of Atlantic
salmon harvested decreased by approximately 2%. However, due
to a limited supply of salmon, consumption decreased in most
markets in 2023 compared to 2022. The largest relative increases
in consumption were found in China, up 39%, and Russia, up 19%,
while the demand in EU & the UK was down by 5%.
The Group's price realization for the year was NOK 82.7 per
kg (NOK 75.8 per kg) on aggregate for its farming regions. By
comparison, the average NQSALMON NOK/kg price for 2023
was NOK 92.3 per kg (82.0). The Group’s price realization
FIGURE 3.9
SENSITIVITY ANALYSIS SALES REVENUE/KG
Actual for 2023
+/- 2.5 %
+/- 5.0 %
+/- 7.5 %
+/- 10.0 %
+/- 12.5 %
Sales revenue/kg
opEBIT/kg impact
82.7
84.8 / 80.6
86.8 / 78.6
88.9 / 76.5
91.0 / 74.4
93.0 / 72.4
2.1
4.1
6.2
8.3
10.3
The Group’s primary market is Continental Europe. Sales to
Continental Europe comprised 53% of sales revenue in 2023
(or 56% of volume sold), down from 58% of the sales revenue
in 2022 (63% of volume sold). North America was the second
largest market, and totaled 31% of sales revenue in 2023 (or 31%
of volume sold), up from 29% of the sales revenue in 2022 (26%
of volume sold). Sales to Asia accounted for 11% of the sales
revenue in 2023 (or 7% of the volume), compared to 9% in 2022
(6% of volume). Even though salmon is regarded as a commodity,
prices vary across geographical markets, with the (relatively)
highest price/kg generated in Asia and North America.
compared to 84 697 in 2022. The Norwegian regions contributed
was negatively impacted by contracts for some of the Group’s
71% (76%) of the harvested volume, while the Canadian regions
Norwegian volume, in addition to price achievement on
contributed 29% (24%).
production grade harvest volume.
The calculation is performed bottom-up, based on separate calculations for the four
farming regions, by analyzing incremental percentage changes in sales revenue, all
other factors remaining unchanged.
Grieg Seafood did not have sales to Russia in 2023 or 2022. Sales
to Ukraine accounted for 0.1% of Grieg Seafood’s total revenue in
2023, compared to 0.3% in 2022.
The Group’s main product, fresh whole gutted Atlantic salmon,
The sensitivity analysis below illustrates the impact changes in
is traded largely as a commodity, and the prices achieved largely
sales revenue/kg have on Operational EBIT/kg.
reflect a general market price. The prices achieved will, to some
extent, deviate from the spot market price, based on quality,
sales contracts and the ability to place the salmon effectively
in the market. Price achievement is measured relative to the
relevant observed market price or reference price. There are
several reference prices for salmon. In Norway, Fish Pool
provides historic price information, as well as future salmon
derivative prices FCA Oslo as part of the NASDAQ Salmon Index
(NQSALMON). In the USA, Urner Barry provides reference
prices for North American salmon in Seattle and Chilean
salmon in Miami. Market prices are correlated across regions,
but significant short-term variations between markets are not
uncommon.
Total sales revenue for the year came to NOK 7 020 million,
down NOK -144 million from NOK 7 164 million in 2022. The sales
revenue from the Group’s farming regions totaled NOK 5 956
million in 2023, down NOK -462 million from NOK 6 418 million in
2022 (see Note 5 to the Group Accounts). The decrease in sales
revenue is due to a combination of lower harvest volume and
lower share of superior quality fish in 2023 compared to 2022.
The difference between the total sales revenue for the Group of
NOK 7 020 million and sales revenue from farming regions of
NOK 5 956 million is attributable to the Elim/Other effect (see
Note 5 to the Group Accounts), which includes the gross uplift on
sales revenue for the Group generated by the sales organization.
PART 03 - OUR FINANCIAL RESULTS
65
FARMING COST
Costs directly related to the production and harvesting of salmon
FIGURE 3.10
SENSITIVITY ANALYSIS FARMING COST/KG
FIGURE 3.11
FARMING COST
comprise the farming cost. The inputs needed to raise a live
salmon from roe to harvestable size account for the bulk of
the farming cost. In addition, costs related to harvesting and
Actual for 2023
Farming cost/kg
opEBIT/kg impact
Feed cost
Admin
Depreciation
Smolt
Salaries
Other
processing are included. Performance is tracked through the
farming cost per kg of harvested salmon. Tracking the underlying
drivers that influence the cost of salmon to be harvested in the
future, such as survival, feeding and growth, is therefore vital.
The regional Operational EBIT is calculated as sales revenue
less the farming cost. See Note 5 to the Group Accounts and
Alternative Performance Measures for more information.
Until harvest, the production cost of the salmon is capitalized
to inventory and included in the line item ‘biological assets’ in
the balance sheet. The production cycle for a salmon, from roe
to harvest weight, is about three years, whereas the production
cycle after smoltification is about 12-24 months. Working capital
requirement is, per generation, generally progressive throughout
the production cycle. Due to the long production cycle for Atlantic
salmon with a harvest weight of about 4-5 kg, the expensed
farming cost through the income statement at the point of
harvest reflects all costs for all past periods (if not previously
expensed as abnormal mortality).
Production cost capitalized to inventory (biological assets
excluding fair value adjustment, see Note 19 of the Group
Accounts) comprises feed as well as health, treatment and
fish welfare-related expenses. In addition, the production cost
capitalized to inventory includes salary, depreciation of fixed
assets and administration costs that are allocated to production.
Feed cost comprises the largest individual part of the production
cost.
In recent years, the industry has faced challenges with respect
to sea lice. This has caused an increase in costs directly related
to treatments and increased investments in equipment and
technologies. This development has had a noticeable impact on
the relative allocation of cost factors, as well as the total cost
level in the industry. In terms of cost per kg, however, the loss
of harvested volumes has had a significantly larger impact than
the direct cost increases. As production cost per kg has risen
in recent years, the directly variable cost of feed has become a
smaller part of the total incurred cost per kg produced salmon.
At the same time, other costs, such as salaries, health costs and
maintenance, have become a larger share of the total. Although
the industry has seen feed prices increase by up to 40% from
2021 to 2022, this was not fully captured in the expensed farming
cost until 2023 when the fish impacted by the price increase was
harvested.
The sensitivity analysis illustrates the impact changes in
farming cost/kg have on the Operational EBIT/kg, expressed as
percentage changes in the 2023 financials.
-/+ 2.5 %
-/+ 5.0 %
-/+ 7.5 %
-/+ 10.0 %
-/+ 12.5 %
70.2
68.5 / 72.0
66.7 / 73.7
64.9 / 75.5
63.2 / 77.2
61.4 / 79.0
1.7
3.3
5.0
6.6
8.3
The calculation is performed bottom-up, based on separate calculations for the
farming regions, by analyzing incremental percentage changes in farming cost, all
other factors remaining unchanged.
In addition to purchase prices for inputs to production,
profitability is also influenced by how quickly the salmon grow
and how efficiently feed is converted into weight gain (feed
conversion rate). Water temperatures, biological conditions,
farming practices and fish survival are key drivers for salmon
growth. Higher seawater temperatures increase growth, but
also increase biological risks in the form of diseases, sea lice
and algal blooms. This may in turn result in lost feeding days,
lower growth and reduced survival. Through the introduction of
improved sensor technology, use of advanced imaging analysis
and other technologies, the Group is continuously improving the
ability to make informed decisions about feeding and protective
measures.
Strong and healthy fish, combined with high feed quality and good
feeding practices, are the key to achieving a low production cost.
Farming performance is measured through the economic feed
conversion rate, or eFCR, and relative growth indices (achieved
growth compared to own and feed supplier expectations). Feed
accounted for 39% of the total cost per kg harvested fish in 2023,
similar to 2022. At the same time, the economic feed conversion
rate (eFCR) also remained unchanged from 2022 to 2023 at 1.39
for the Group (or 1.41 in 2023 excl Newfoundland). The eFCR
measures how much fish feed is used to produce one kilogram of
live salmon (net of mortality). The main difference between eFCR
and bFCR (biological feed conversion rate) is that bFCR does not
adjust the production figure for mortality.
Salmon growth, survival rates and the economic feed conversion
rate (eFCR), are strongly linked to fish health, disease and sea
lice. Treatments, fasting and reduced appetite negatively impact
growth, reduce our harvested volumes and increase the cost
per kg of harvested fish. In short, an efficient feed conversion is
crucial to being cost competitive.
Feed cost
Admin
Depreciation
Smolt
Salaries
Other
2019
2020
2021
2022
2023
41%
4%
5%
11%
6%
32%
37%
37%
39%
39%
4%
5%
12%
6%
36%
4%
5%
15%
6%
4%
4%
14%
5%
33%
33%
4%
4%
13%
5%
36%
0%
100%
FIGURE 3.12
ECONOMIC FEED CONVERSION RATE
Rogaland
Finnmark
British Columbia
Newfoundland
Grieg Seafood Group
Rogaland
Finnmark
British Columbia
Newfoundland
Grieg Seafood Group
1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
1.0
2019
2020
2021
2022
2023
PART 03 - OUR FINANCIAL RESULTS
66
FIGURE 3.13
KEY FIGURES
Rogaland
Finnmark
British Columbia
Newfoundland
Elim/Other
Grieg Seafood Group
Source: Group Accounts, Note 5
Harvest volume GWT tonnes
Operational EBIT/kg (NOK)
Operational EBIT (NOK million)
2023
25 980
25 170
17 682
3 184
—
72 015
2022
28 387
36 024
20 286
—
—
84 697
2023
28.3
13.0
-5.3
-45.9
n/a
10.8
2022
26.6
25.7
13.3
n/a
n/a
20.5
2023
736
327
-94
-146
-43
780
2022
755
926
270
-115
-97
1 739
The Group's farming cost for 2023 ended at NOK 70.2 per
kg (NOK 52.7 per kg). The rise in farming cost compared to
previous year is mainly due to inflation pressure on key input
to production, including feed, in addition to increased cost
of reduced survival. In total, the Norwegian farming regions
contributed to 63% (69%) of the farming cost, an increase of NOK
14.6 per kg in cost, from NOK 47.7 per kg in 2022 to NOK 62.3
per kg in 2023. Canada had, despite a 3% higher harvest volume
year-on-year, a farming cost of CAD 11.3 per kg, up CAD 2.2 per
kg compared to CAD 9.1 per kg in 2022. This is mainly related
to cost inflation and increased cost of reduced survival in BC,
which increased by CAD 0.4/kg compared to 2022. Additionally,
Newfoundland is included in the Canada segment’s farming cost
from 2023, as they commenced harvesting during the year. The
farming cost in Newfoundland is high due to the low volume and
to still being in a development phase with low capacity utilization.
The salmon farming industry might be volatile, due to both
biological and market conditions. The following sensitivity
analysis illustrates the impact changes in eFCR has on the
Operational EBIT/kg, calculated as percentage changes on the
2023 financials.
EBIT
OPERATIONAL EBIT
Operational EBIT (see Note 5 to the Group Accounts and
Alternative Performance Measures for more information) in 2023
ended at NOK 780 million (NOK 1 739 million), equivalent to NOK
10.8 per kg (NOK 20.5 per kg). The decrease was mainly driven
by a weak EBIT in Finnmark due to Spiro as well as loss in BC
related to increased cost.
The difference between Operational EBIT and the EBIT line
item presented in the income statement for 2023 relates
to the non-operational share of profit from associates, the
production fee on the volume harvested in Norway, fair value
adjustment of the Group’s biological assets, impairment of
tangible and intangible non-current assets, litigation and
legal claims, and decommissioning costs, as explained in the
following. Additionally, a reconciliation between Operational EBIT
and the EBIT presented in the income statement is provided in
Note 5 of the Group Accounts.
FIGURE 3.15
GRIEG SEAFOOD GROUP OPERATIONAL EBIT/KG YEAR-OVER-YEAR
Source: Group Accounts, Note 5.
FIGURE 3.14
SENSITIVITY ANALYSIS ECONOMIC FEED CONVERSION RATIO (EFCR)
6.9
Actual for 2023
-/+ 2.5 %
-/+ 5.0 %
-/+ 7.5 %
-/+ 10.0 %
-/+ 12.5 %
eFCR
opEBIT/kg impact
20.5
1.39
1.36 / 1.43
1.32 / 1.46
1.29 / 1.49
1.25 / 1.53
1.22 / 1.56
0.7
1.4
2.0
2.7
3.4
The calculation is performed bottom-up based on separate calculations for the farming
regions, by analyzing incremental percentage changes in eFCR, all other factors
remaining unchanged.
0.8
10.8
-17.5
OpEBIT/kg 2022
Sales revenue/kg
Farming cost/kg
Other cost/kg
OpEBIT/kg 2023
RAW MATERIALS, SALARIES AND OTHER OPERATING
EXPENSES
Raw materials and consumables, which consist mainly of the
Group’s freshwater and seawater fish stocks, in addition to feed,
ended at NOK 2 748 million, up NOK 514 million compared to
NON-OPERATIONAL SHARE OF PROFIT FROM
ASSOCIATED COMPANIES, PRODUCTION FEE AND FAIR
VALUE ADJUSTMENT OF BIOLOGICAL ASSETS
The share of profit from associated companies included in
NOK 2 234 million in 2022. Salaries and personnel expenses
Operational EBIT ended at NOK -7 million for 2023 (NOK -1
ended the year at NOK 726 million, an increase of NOK 30 million
million), see Note 5 to the Group Accounts. The production
from NOK 696 million in 2022. See the Group Accounts Note 5 for
fee, calculated at NOK 0.56 per kg (gutted weight) for volume
more information. Other operating expenses ended at NOK 2 236
harvested during the first half of 2023 and NOK 0.90 per kg
million, up NOK 149 million compared to NOK 2 087 million in
(gutted weight) for volume harvested during the second half
2022.
of 2023 (NOK 0.41 per kg) by the Norwegian regions, came to
NOK 35 million in 2023 (NOK 26 million), while the fair value
adjustment of biological assets impacted the Group positively by
NOK 218 million in 2023, up NOK 135 million from NOK 83 million
in 2022.
PART 03 - OUR FINANCIAL RESULTS
67
WRITE-DOWN OF NON-CURRENT TANGIBLE AND
INTANGIBLE ASSETS, LITIGATION AND LEGAL CLAIMS,
AND DECOMMISSION COSTS
In 2022, Norwegian aquaculture licenses were written down
by NOK 47 million in the income statement (see Note 15 to the
Group Accounts). Additionally, Grieg Seafood decided to end
production in the shíshálh (Sechelt) farming area of British
Columbia, negatively impacting the income statement for 2022
with a write-down of licenses and relevant seawater assets of
NOK 93 million, in addition to site clean-up costs amounting
to NOK 24 million. During the first half of 2023, Grieg Seafood
finished the clean-up and expensed another NOK 3 million in
decommissioning costs and reversed NOK 0.1 million in write-
down of fixed assets related to the project. Total write-down
not included in Operational EBIT in 2023 was as such NOK -0.1
million (NOK 140 million). The site clean-up costs are included in
the financial statement line item "Decommissioning costs" (see
Note 10 of the Group Accounts for more information). In 2023,
the remaining accrual estimated as at year-end 2022 related
to litigation and legal claims was reversed in connection to a
settlement of lawsuits in North America, which explain the net
positive line item contribution litigation and legal claims had
on EBIT in the year, totaling NOK 20 million (cost of NOK 157
million). The income/cost are included in the financial statement
line item "Litigation and legal costs" and thus not included in the
Group’s Operational EBIT (see Note 10 of the Group Accounts for
more information).
EBIT
EBIT (Earnings before interests and taxes) ended at NOK 981
million in 2023, down NOK 517 million from NOK 1 498 million in
2022.
NET FINANCIAL ITEMS, TAXES AND NET
PROFIT FOR THE YEAR
FINANCIAL POSITION
As at 31 December 2023, the book value of the Group's assets
totaled NOK 13 663 million, up NOK 788 million from NOK 12 875
million as at 31 December 2022. The increase in the Group's
balance sheet compared to 2022 was primarily due to increases
in the biological assets and property, plant and equipment.
The Group's goodwill, licenses, other intangible assets, and
property plant and equipment including right-of-use assets
totaled NOK 7 326 million as at 31 December 2023, up NOK
1 121 million from NOK 6 205 million as at 31 December 2022.
Measured relative to total assets, these assets contributed 54%
of the balance sheet as at 31 December 2023, compared to 48%
as at 31 December 2022. The increase in assets are driven by
our gross investment of NOK 880 million for the year as well as
NOK depreciating versus CAD, increasing the book value of the
Group’s Canadian operations when translating to NOK. Lastly,
the Group has made additions of approximately NOK 708 million
in leases that would be classified as operational leases according
to the prior IFRS Standard IAS 17, which is not included in gross
investments. These lease additions primarily relate to long-term
well-boat charter hire, securing the Group’s operational capacity
in the year’s ahead.
Biological assets measured at cost totaled NOK 3 736 million
as at 31 December 2023, up NOK 840 million from NOK 2 896
million as at 31 December 2022. Even though all farming regions
had a higher biological asset book value at cost as at year-
end 2023 compared to the same time last year, a significant
contribution to the increase in biological assets are driven by
Newfoundland. Newfoundland are, at year-end, conducting
harvesting of the first generation of fish from the region, which
explain a significant increase in biological assets measured at
cost from Newfoundland. Measured relative to total assets, the
accumulated capitalized cost of inventory contributed 27% of
the balance sheet as at 31 December 2023, compared to 22%
NET FINANCIAL ITEMS
Net financial items came to NOK -137 million in 2023, down NOK
as at 31 December 2022. Grieg Seafood’s biological assets are
primarily fish at sea, which represented 93% of the book value
87 million from NOK -50 million in 2022. Compared to 2022, the
of biological assets, excluding fair value adjustment, as at
debt service cost in 2023 was higher. This is primarily due to the
31 December 2023. The comparable figure for 31 December 2022
increased market interest rates compared to 2022, which impact
was 94%. By weight, biological assets totaled 58 181 tonnes at
our borrowing costs through the floating rate component of the
year-end 2023, up 7 568 tonnes from 50 614 tonnes at year-end
term-loans’ and bond loan’s interest rate.
2022. Biological assets stocked at sea accounted for 99% of this
TAXES AND NET PROFIT FOR THE YEAR
Profit before tax in 2023 totaled NOK 844 million, a decrease of
NOK 603 million from NOK 1 448 million in 2022. The tax expense
for 2023 came to NOK 284 million, compared to a tax expense
of NOK 294 million in 2022. Net profit in 2023 came to NOK 560
million, down NOK 594 million from NOK 1 154 million in 2022.
amount at year-end 2023 (99% as at year-end 2022). The average
live weight of the fish on aggregate (on land and at sea) was 1.0
kg as at 31 December 2023, compared to 1.1 kg at year-end 2022.
As at 31 December 2023, Grieg Seafood was in a good financial
position. The cash balance at the end of the year was NOK
216 million, down NOK 426 million from NOK 643 million as
at 31 December 2022. In addition, The undrawn revolving
credit facility and overdraft facility was NOK 887 million as
at 31 December 2023, compared to NOK 1 700 million as at
31 December 2022. At the end of 2022, the Group had invested
approximately NOK 1 000 million of cash surplus in money
market funds - an investment that the Group has exited in full as
at year-end 2023. Current assets (excluding fair value adjustment
lease additions incl. the effect of changes in lease agreements
of biological assets) over current liabilities measured 3.1 as at
of approximately NOK 708 million not included in gross
31 December 2023, compared to 2.8 as at 31 December 2022.
investments, which primarily relates to long-term well-boat
Total equity as at 31 December 2023 came to NOK 6 669 million,
charter hire contracts.
up NOK 183 million from NOK 6 486 million as at 31 December
2022. The equity ratio as at 31 December 2023 was 49%
The Group was in compliance with its financial covenants as
compared to 50% as at 31 December 2022.
at 31 December 2023. As at 31 December 2023, the equity
ratio according to covenant was 53%, compared to 52% as at
The Group's debt structure comprises sustainability-linked loans
31 December 2022. As at 31 December 2023, 56% of gross
with a NOK 750 million term loan (outstanding NOK 656 million),
interest-bearing liabilities (See Note 27 to the Group Accounts)
an EUR 75 million term loan (outstanding EUR 66 million), a
were green or sustainability-linked, compared to 75% as at
NOK 1 500 million revolving credit facility and a NOK 200 million
31 December 2022. The decrease in the share of green and
overdraft facility. As at 31 December 2023, net interest-bearing
sustainability-linked financing is due to an increase of leasing
liabilities (NIBD) excluding the effect of IFRS 16 totaled NOK
liabilities during 2023.
3 873 million, up NOK 2 135 million from NOK 1 739 million as
at 31 December 2022. The increase in NIBD excluding the effect
Grieg Seafood aims to provide shareholders with a competitive
of IFRS 16 is due to biomass build-up during the year and cash
return on invested capital through payment of dividends and
outflow related to dividend payout of NOK 504 million and taxes
share price increases. The Board of Directors maintains that, as
paid totaling NOK 861 million.
an average over time, dividends should correspond to 30-40%
of the Group’s profit after tax, adjusted for the effect of the
In total, NIBD excluding the effect of IFRS 16 divided by the last
fair value of biological assets (limited to 50% by Green Bond
twelve months’ actual harvest volume (tonnes GWT) equalled
agreement). At the same time, the Group’s net interest-bearing
NOK 53.8 per kg as at year-end 2023, compared to NOK 20.5 at
debt per kg harvested salmon should remain below NOK 40,
year-end 2022. In comparison, at year-end 2023, NIBD including
but can be exceeded in periods of growth investments. In 2023,
the effects of IFRS 16 was NOK 4 879 million, up NOK 2 656
the General Meeting of Grieg Seafood ASA approved a dividend
million from NOK 2 223 million as at 31 December 2022, which
distribution of 4.5 (NOK 3.0 per share), which was according to
equals 36% of the Group’s assets as at 31 December 2023,
the Board of Directors proposal as communicated in the Annual
compared to 17% as at 31 December 2022. Besides the causes
Report of 2022. Based on the 2023 financials, the Board of
of changes in NIBD excluding IFRS 16 as mentioned above, the
Directors proposes a dividend of NOK 1.75 per share (equivalent
changes in NIBD incl. the effects of IFRS 16 is driven by
to NOK 196 million) be distributed to shareholders in 2024. The
proposed dividend is subject to approval by the Annual General
Meeting of Grieg Seafood ASA in 2024.
FIGURE 3.16
EQUITY RATIO AND NIBD/HARVEST
Equity ratio
NIBD/Harvest
o
i
t
a
r
y
t
i
u
q
E
55%
50%
45%
40%
2019
2020
2021
2022
2023
NIBD/harvest calculated as NIBD according to covenant divided by last 12 months harvested volume.
Equity ratio
NIBD/Harvest
58
55
53
50
48
45
43
40
38
35
33
30
28
25
23
20
18
/
I
N
B
D
H
a
r
v
e
s
t
PART 03 - OUR FINANCIAL RESULTS
68
Depreciation and amortization of non-current tangible and
Total equity at the end of 2023 stood at NOK 2 981 million, up
NOK 1 500 million revolving credit facility and a NOK 200 million
intangible assets ended at NOK 3 million, down NOK 4 million
NOK 30 million compared to NOK 3 011 million in 2022. During
overdraft facility. At the end of the year, NOK 887 million of the
compared to NOK 7 million in 2022.
the year, a dividend of NOK 4.5 per share, or NOK 504 million
revolving credit facility and the overdraft facility was available for
Other operating expenses totaled NOK 85 million in 2023, down
was recognized in the equity as at year-end 2022). At year-end,
was NOK 2 144 million as at 31 December 2023 (excl. amortized
NOK 115 million from NOK 200 million in 2022. Last year, in 2022,
Grieg Seafood ASA had an equity ratio of 39%, in line with the
loan costs). The company also has a green bond issue of NOK
the Group recognized litigation and legal claims costs related to
year before. At the end of the year, Grieg Seafood ASA was in
1 393 million (excl. amortized loan costs), which matures in June
lawsuits in North America under other operating expenses. The
compliance with its financial covenants. Grieg Seafood ASA’s
2025.
in total, was distributed to shareholders (the dividend accrual
utilization. The total amount outstanding on the syndicated debt
reduction in other operating expenses in 2023 compared to 2022
financial covenant is tied to the equity ratio (excl. the effect
is primarily due to the settlement paid in North America last year,
of IFRS 16) in the Grieg Seafood Group, which was 53% as at
31 December 2023 compared to 52% at the end of 2022.
CASH FLOW
Grieg Seafood ASA’s net cash flow from operations in 2023
totaled NOK 218 million, compared to NOK -36 million in 2022.
CASH FLOW
The net cash flow from operating activities for 2023 totaled NOK
-302 million (NOK 1 584 million). The reduction in net cash from
operational activities is primarily due to a combination of lower
harvest volume and thus lower revenue, higher cost level in the
farming regions, and NOK 861 million in income taxes paid in
2023 compared to NOK 94 million in 2022.
For 2023, the net cash flow from investing activities totaled NOK
256 million (NOK -1 651 million), of which investments in non-
current tangible and intangible assets totaled NOK 792 million
(NOK 564 million). In addition, investments of NOK 23 million
(NOK 112 million) have been made in associated companies. At
the end of 2022, the Group invested approximately NOK 1 000
million of cash surplus in money market funds - an investment
that the Group has exited in full as at year-end 2023.
The net cash flow from financing activities for 2023 was NOK -387
million (NOK -226 million). In 2023, a dividend of NOK 504 million
(NOK 4.5 per share) was paid. In 2022, the Group repurchased
bonds worth NOK 77 million during the year, of which NOK 50
million had been settled in cash by year-end 2022, with the
remaining NOK 25 million paid in January 2023. Towards the end
of the year, the Group made a drawdown on the revolving credit
facility and overdraft facility totaling NOK 750 million and NOK 63
million, respectively.
The net change in cash and cash equivalents for the 2023 was
NOK -434 million (NOK -292 million), and as at 31 December
2023, the Group had a cash balance of NOK 216 million,
down NOK 426 million from NOK 643 million as at 31 December
2022.
GRIEG SEAFOOD ASA
PROFIT FOR THE YEAR
The parent company’s financial statements have been prepared
in accordance with Norwegian accounting principles (NGAAP).
Grieg Seafood ASA is the holding company of the farming and
sales operations in the Grieg Seafood Group. In addition, the
company is the employer of Group management as well as
centralized functions of the Group.
Total operating income for the year ended at NOK 258 million in
2023, down NOK 30 million compared to NOK 288 million in 2022.
The company’s operating income was reduced in 2023 compared
to 2022 primarily due to adjustments made on the management
fee model.
Salaries and personnel expenses totaled NOK 85 million in 2023,
down NOK 33 million compared to NOK 118 million in 2022.
The decrease in salary costs are primarily due to the 2022-cost
included NOK 30 million related to the synthetic option scheme,
compared to NOK 2 million in 2023.
PART 03 - OUR FINANCIAL RESULTS
for which a portion of the settlement relates to Grieg Seafood
ASA. See the Group Accounts Note 10 for more information.
The parent company recorded an operating profit of NOK 85
million in 2023, compared to a loss of NOK 37 million in 2022.
Net financial items ended at NOK 126 million in 2023, down
NOK 927 million from NOK 1 053 million in 2022. The lower net
financial items is due primarily to Grieg Seafood ASA being a
receiver of group contributions from subsidiaries in 2022 of
approx NOK 1 000 million, compared to being a provider of Group
contribution in 2023 (which increase cost price of investment in
subsidiary and are thus not recognized in the income statement).
Interest expenses from external financing decreased in 2023.
This is primarily due to the general increase in market rates,
which increase our borrowing costs through the floating rate
component of the term-loans’ and bond loan’s interest rate.
Profit before tax for Grieg Seafood ASA totaled NOK 211 million in
2023, down NOK 805 million from NOK 1 016 million in 2022. The
tax expense in 2023 ended at NOK 52 million, compared to NOK
222 million in 2022, bringing net profit for the year to NOK 159
million, down NOK 635 million from NOK 794 million in 2022.
BALANCE SHEET
Total assets amounted to NOK 7 584 million at the end of 2023,
up NOK 405 million from NOK 7 178 million the year before. The
change in the book value of assets is primarily due to changes in
current assets and working capital items, including receivables
from subsidiaries. As Grieg Seafood ASA is the owner of the cash
pool arrangement, net cash flow from the subsidiaries part in
the group account impacts Grieg Seafood ASA’s working capital
through changes in cash and cash equivalents and short-term
receivables/liabilities to subsidiaries.
The book value of investments in subsidiaries came to NOK 2 023
million, which is up NOK 119 million compared to NOK 1 903
million in 2022. The increase is due to Grieg Seafood ASA being a
provider of group contribution to subsidiaries in 2023.
Long-term loans to subsidiaries amounted to NOK 810 million,
up NOK 13 million from NOK 798 million due to changes in
foreign exchange rates, as the principal (in CAD) is unchanged.
In 2022, a cash surplus was of approximately NOK 1 000 million
was invested in money market funds - an investment which the
company has exited in full as at 31 December 2023.
The company has a syndicated sustainability-linked loan with
The difference in net cash flow from operations between 2023
secured lenders totaling NOK 3 200 million, which compromises
and 2022 is primarily due to differences in net working capital
a NOK 750 million term loan, an EUR 75 million term loan, a
items. Additionally, there was a higher income tax paid in 2023
compared to the year before.
FIGURE 3.17
GROSS INVESTMENTS, HARVEST VOLUME TONNES GWT
AND GROSS INVESTMENTS/KG
Gross investments
Harvest volume GWT
I
I
N
O
L
L
M
K
O
N
1 200
800
400
0
1
0
0
0
T
O
N
N
E
S
100
90
80
70
2019
2020
2021
2022
2023
Gross investments
Harvest volume GWT
/
g
k
K
O
N
15
10
5
2019
2020
2021
2022
2023
The cash payment of NOK 620 million made on the acquisition of Grieg Newfoundland is not included in the 2020 figure presented in the chart above. The increased level in 2020 (gross
investments of NOK 13.8/kg) is largely attributable to capital investments in the freshwater facility in Newfoundland. The freshwater facility in Newfoundland was completed in 2021.
69
Cash flow from investing activities came to NOK -812 million
(NOK -575 million in 2022). The difference from 2022 to 2023
is primarily due to a cash surplus of approximately NOK 1 000
million being invested in money market funds in 2022, and the
very same investment been exited in full as per 31 December
2023. Additionally, loans to subsidiaries have increased
substantially during the year.
Net cash flow from financing activities came to NOK 97 million,
compared to NOK 343 million in 2022. The change in net cash
flow from financing activities from 2022 to 2023 is primarily due
to a higher dividend of NOK 4.5 per share being distributed during
the year compared to NOK 3.0 per share in 2022. Additionally,
debt service costs is increased during the year, primarily due to
generally higher market rates which increase the floating rate
component of the interest rate in our term-loan facilities and
bond loan.
As at 31 December 2023, available cash totaled NOK 27 million,
compared to NOK 525 million as at 31 December 2022.
FINANCIAL RESULTS AND ALLOCATIONS –
GRIEG SEAFOOD ASA
Our ambition is to create shareholder value and deliver
competitive returns relative to comparable investment
RISK AND RISK MANAGEMENT
The Group is exposed to risks in numerous areas, such as
biological production, the effects of climate change, degradation
of nature, compliance risk, the risk of accidents, changes in
salmon prices, and the risk of politically motivated trade barriers.
The substantially enacted resource rent tax on salmon farming
in Norway is deemed a high political risk for our operations.
The Group’s internal controls and risk exposure are subject to
continuous monitoring and improvement, and efforts to reduce
risk in different areas have a high priority. Management has
established a framework for managing and eliminating most of
the risks that could prevent the Group from attaining its goals.
See the Group’s risk overview here. A summary of some of these
risks, in the short and medium term, is included below.
The members of the Board of Directors and the CEO are covered
by Directors and Officers (D&O) insurance. The insurance
provides liability cover for members of the Board of Directors and
the CEO with respect to claims arising from decisions or actions
they may take on behalf of Grieg Seafood ASA.
OPERATIONAL RISK
The greatest operational risk relates to biological developments
alternatives. The Group’s dividend policy is that the dividend
within the Group’s smolt and marine aquaculture operations.
should, over time, average 30-40% of the Group's net profit after
The book value of live fish at year-end was NOK 5 066 million,
tax before fair value adjustment of biological assets (limited to
of which the fair value adjustment was NOK 1 330 million. The
50% by Green Bond agreement). At the same time, the Group’s
book value of live fish exclusive fair value at year-end 2023
net interest-bearing debt per kg harvested salmon should
was NOK 3 736 million, or 27% of the balance sheet. Biological
remain below NOK 40, although this may be exceeded in periods
risks include oxygen depletion, diseases, viruses, bacteria,
of growth investments. In 2023, the General Meeting of Grieg
parasites, algae blooms, jelly fish and other contaminants. To
Seafood ASA approved a dividend distribution of 4.5 (NOK 3.0 per
reduce this risk, the Group focuses on improving fish health
share), which was according to the Board of Directors proposal
and welfare through several initiatives, including joint fallowing
as communicated in the Annual Report of 2022. Based on the
and area-based management, switching from pharmaceutical
2023 financials, the Board of Directors proposes a dividend of
to mechanical delousing treatment methods, and use of sensor
NOK 1.75 per share (equivalent to NOK 196 million) be distributed
technology to reduce algae challenges. The Group’s post-smolt
to shareholders in 2024. The proposed dividend is subject to
strategy, where fish are grown to a larger size on land, thereby
approval by the Annual General Meeting of Grieg Seafood ASA in
shortening the time they spend in open sea pens, is an important
2024.
element of the effort to reduce biological risk.
The parent company, Grieg Seafood ASA, recorded a profit after
The freshwater production has been good across all regions
tax of NOK 159 million for 2023, which the Board proposes that
during the year, except from BC, which has experienced reduced
the Annual General Meeting allocate as follows:
survival due to technical issues and lower quality roe, resulting
FIGURE 3.18
ALLOCATION OF PROFIT/LOSS FOR THE YEAR, GRIEG SEAFOOD ASA
NOK million
Provision for dividends
Transfer from retained equity
Total allocated
196.2
-37.1
159.1
in lower stocking to sea and growth. We have added additional
expertise at the hatchery to address the production issues.
Seawater production was impacted by biological challenges in
the beginning of the year. In Rogaland, advanced harvesting was
performed to reduce biological risk related to Infectious Salmon
Anemia (ISA) in addition to winter ulcers. During the second half
of the year, there were some challenges related to gill disease.
However, despite this, the underlying production has been good
during the year in Rogaland. To reduce the risk related to ISA,
Rogaland has initiated a vaccination program of all smolt going
to sea, which is expected to reduce the impact from ISA going
forward.
Finnmark has had a challenging year, with the parasite
Spironucleus Salmonicida (Spiro), leading to advanced harvest
and culling of fish with sickness signs, in addition to winter ulcers
and impact from string jellyfish towards the end of the year. To
compensate for lost biomass growth, the region transferred
more smolt to sea. Additionally, water treatment equipment have
been installed and disinfection measures have been implemented
to reduce future risk of Spiro entering the freshwater facility.
There have been no new incidents of Spiro in the freshwater
facility during the year.
Seawater production in BC has been affected by high sea lice
pressure and low oxygen events. However, due to successful
efforts in treatments, aeration and barrier systems, the region
has been able to maintain the sea lice level stable and to reduce
the impact from low oxygen events.
MARKET RISK
The global volume of Atlantic salmon harvested in 2024 is
expected to increase by only 2% compared to 2023. With
expectations of limited supply growth in 2024, combined with an
outlook for continuing strong demand fueled by an increased
focus on healthy food and sustainably produced proteins, the
Group currently believes in sustained strong market in 2024. The
current Fishpool forward price for 2024 is around NOK 100 per
kg, reflecting an optimistic market outlook.
The Group targets a contract share of 20-50% for its Norwegian
harvested volume. The estimated contract share for 2024 is 6%.
The Group does not have contracts in Canada.
The Group’s has its own internal sales and market organization,
including a value-added department. The Group has secured
value-added processing capacity in both Norway and Canada to
reduce the risk of low price achievement on production grade
fish. Processing capacity will be further strengthened in 2025,
when a new 10 000-12 000 tonnes capacity secondary processing
facility at Oslo airport Gardermoen is expected to open.
Newfoundland has had a good and stable production throughout
the year, and has not experienced any sea lice or other biological
issues thus far.
Continental Europe is the Group’s most important market, with
North America as the second largest market. The Group does not
sell salmon to Russia due to the ongoing war against Ukraine.
The feed industry is characterized by large global suppliers
operating under cost plus contracts, and feed prices are
accordingly linked to the global markets for fishmeal, vegetable
meal, animal proteins and fish/vegetable/animal oils, which
are the main ingredients in fish feed. Access to terrestrial feed
ingredients is stable, while access to marine feed ingredients
continues to be limited. The Group expects, on an aggregate
level, high but relatively stable prices in 2024.
COMPLIANCE RISK
Grieg Seafood is committed to conducting its business ethically
and with integrity. The Group performs risk assessments on its
operations and value chain, and has implemented mitigating
measures and controls to prevent corruption and money
laundering activities. The Group did not experience any incidents
of corruption or money laundering activities in 2023. The Group
adheres to all relevant sanctions related to Russia and Belarus.
The risk of cyberattacks is relevant for the Group. Cyberattacks
may cause disruption to the ordinary course of operations, both
within the Group and at third parties, as well as damage and/
or incapacitate critical infrastructure necessary to operate
the Group’s freshwater and seawater sites. The outcome of
a cyberattack may adversely impact fish welfare at affected
sites, the Group’s reputation and financial performance. Grieg
Seafood are continuously working to strengthen its defense
towards cyberattacks and other malicious attempt to disrupt
our infrastructure. Cybersecurity is high on management’s
agenda, and is addressed through securing the digital systems
and infrastructure (incl. monitoring and analysis of all network
traffic in our infrastructure), as well as awareness and training,
strengthening the focus on securing remote access for
employees and vendors. Furthermore, the Group has procedures
in place for incident handling and strategic crisis management
should a cyber incident occur.
In February 2019, the European Commission launched an
investigation to explore potential anti-competitive behavior
in the market for spot sales of fresh, whole and gutted
Norwegian farmed Atlantic salmon. On 25 January 2024,
Grieg Seafood received a Statement of Objections from the
European Commission related to its investigation. The issuance
of a Statement of Objections is a common and formal step
in the process, where the European Commission sets out its
preliminary view in the matter.
The Statement of Objections in no way prejudices the final
outcome of the European Commission's proceedings.
Subsequent to the Statement of Objections, the companies
concerned may examine the documents in the Commission's
investigation file and present its views on the case, before the
Commission takes a decision on the matter. Grieg Seafood is
currently examining the Statement of Objections carefully and
continues to fully cooperate with the European Commission's
investigation.
PART 03 - OUR FINANCIAL RESULTS
70
Furthermore, three class-actions were filed in Canada (none
has been certified as a class-action). Even though Grieg Seafood
POLITICAL RISK
considers the complaints to be entirely without merit, Grieg
Seafood have agreed to a settlement offer from the plaintiffs
and entered into a respective settlement agreement dated
22 September 2023 as the costs of litigation in Canada can
be substantial. The settlement agreement was approved by
the Federal Court on 9 February 2024. A claim has been filed
for damages in the UK against, among others, Grieg Seafood
ASA and Grieg Seafood UK Limited arising from alleged
unlawful cartel arrangements in relation to the supply of
farmed Atlantic salmon. Grieg Seafood rejects that there is
any basis for the alleged claim and considers the complaint to
be entirely unsubstantiated. In general, Grieg Seafood denies
any anti-competitive conduct whether it is in regard to the EC
investigation, the claim filed in the UK or any possible future
claims related to this matter subsequent to the issuance of the
SO. Grieg Seafood will continue to collaborate with the European
Commission and follow up all processes as it deems appropriate.
See more information in Note 10 and Note 32 of the Group
Accounts.
NORWAY
The Norwegian Parliament passed the a resource tax scheme
on aquaculture in Norway 31 May 2023, with a tax rate of 25%,
effective from 1 January 2023. The tax applies to commercial
marine-phase salmon aquaculture activity in Norway and the
resource rent tax is an additional taxation on aquaculture, as the
operations are subject to corporate taxation of 22%, bringing the
total marginal tax rate to 47%.
The uncertainties related to the structure and impact of the
resource rent tax has delayed the Group's investment and growth
plans. Grieg Seafood farms Atlantic salmon in both Norway and
Canada, and the Norwegian resource rent tax will not affect
the tax load of the Group’s operations in British Columbia and
Newfoundland, as they are subject to Canadian tax legislation.
Overall, salmon farming in Norway may lose competitiveness
compared to aquaculture in other countries. With new
technologies being developed, where there is no reliance on a
coastline with naturally tempered water, aquaculture investors
may find it more attractive to invest and develop the industry in
places with lower tax levels.
See further information provided in Note 12 of the Group
Accounts.
CANADA
In British Columbia (BC), licenses are renewed by the federal
Department of Fisheries and Oceans (DFO) on a regular basis,
with different length. By 2025, the Canadian Federal Government
aims to have created a responsible plan to transition into better
and more sustainable practices in British Columbia, in order
to reduce interactions with wild salmon. In 2022, the Canadian
Department of Fisheries and Oceans renewed all farming
licenses for two years to allow for the development of the plan.
Grieg Seafood expects that the licenses will be renewed in
2024 and that they are incorporated into the transition plan.
Grieg Seafood supports the transition and continues to work
collaboratively with their First Nation partners, government and
local communities on innovation and modernization towards a
sensible transition plan.
In addition, farm tenures in BC are renewed by the province on a
regular basis. From 2022, farm tenures that are not accepted by
the First Nation that is the rights-holder of the territory where
the farm is located will not be renewed. All of Grieg Seafood's
current production is operating under agreements with First
Nations. Grieg Seafood supports the implementation of the
United Nations Declaration on the Rights of Indigenous Peoples
(UNDRIP) into BC regulations, and we are engaging in the
ongoing process of reconciliation between the government, First
Nations and industries.
See Note 13 of the Group Accounts for more information.
FINANCIAL RISK
FINANCING RISK
The Group operates within an industry characterized by high
LIQUIDITY RISK
The Group has invested substantial amounts during the last few
years. This includes the acquisition of Grieg Newfoundland and
the build-up of biological assets in all regions. The Group utilizes
volatility, which entails financial risk. The Group’s business and
factoring agreements to finance its trade receivables in Norway.
plans are capital intensive. To the extent that sufficient cash
The trade financier purchases credit-insured trade receivables
is not generated from operations in the long term, additional
(maximum NOK 500 million of outstanding receivables) from the
funding needs to be raised to pursue the Group’s growth
Norwegian sales organization, transferring significant (95%) risk
strategy and finance capital expenditures. Adequate sources of
and control to the credit insurer. The receivables purchased by
capital funding might not be available when needed or may only
the trade financier are derecognized from the Group’s statement
be available on unfavorable terms. Financial and contractual
of financial position.
hedging is a matter of constant consideration, in combination
with operational measures. Management draws up rolling
Monitoring of the Group’s liquidity reserve is carried out at group
liquidity forecasts, extending over five years. These forecasts are
level in collaboration with the operating companies. Management
based on conservative assumptions for salmon prices and form
and the Board seek to maintain a high equity ratio (49% at
the basis for calculating liquidity requirements. This forecast
31 December 2023), to be well positioned to meet financial and
also forms the basis for the Group’s financing needs. Available
operational challenges.
financing will be impacted by the Norwegian resource rent tax
regime, as - all else equal - less cash will be available to service
debt, finance investments and provide a return on investment for
CURRENCY RISK
The Group is primarily impacted by currency exposure to CAD,
shareholders.
USD and EUR. Part of the long-term intercompany loans to
subsidiaries in the Group are in the local currency and are
The Group's debt structure comprises sustainability-linked loans,
regarded as net investments, as there are no set plans for
including a NOK 750 million term loan, an EUR 75 million term
their repayment. The currency effect of these net investments
loan, a NOK 1 500 million revolving credit facility and a NOK 200
is included in the Group's consolidated statement of other
million overdraft facility. See Note 27 of the Group Accounts for
comprehensive income (OCI). In addition, the sales organization
more information. In addition, the Group has a senior unsecured
hedges foreign currency risk expose if required. The Group may
green bond issue with an outstanding amount of NOK 1 393
not be successful in hedging against currency fluctuations, and
million, which matures in June 2025.
significant fluctuations may have a material adverse effect on the
Group's financial results and business.
As at 31 December 2023, the Group had NOK 4 879 million in
net interest-bearing liabilities (NOK 3 873 million, excluding the
effect of IFRS 16), and an equity ratio of 49% compared to 50% as
INTEREST RATE RISK
The Group is exposed to interest rate risk through its borrowing
at 31 December 2022. The equity ratio according to the financial
activities, and to fluctuating interest rate levels in connection
covenants was 53% compared to 52% as at 31 December 2022.
with the financing of its activities in the various regions. The
See Note 27 of the Group Accounts for more information.
Group's existing loans are at floating interest rates, but separate
Cash and cash equivalents at 31 December 2023 totaled NOK
fixed-rate contracts have been entered into to reduce interest
216 million (NOK 643 million). The Group had a good financial
rate risk. Grieg Seafood’s policy is to have 20–50% of interest-
foundation at year-end 2023.
bearing debt hedged through interest rate swap agreements. A
given proportion shall be at floating rates, while consideration
will be given to entering and exiting hedging contracts for the
remainder.
CREDIT RISK
Credit risk is managed at Group level. Credit risk arises from
transactions involving derivatives and deposits in banks and
financial institutions, transactions with customers, including
trade receivables, and fixed contracts as well as loans to
associates. The Group has procedures to ensure that products
are sold only to customers with satisfactory creditworthiness.
The Group normally sells to new customers solely against
presentation of a letter of credit or against advance payment, and
credit insurance is used when deemed necessary.
PART 03 - OUR FINANCIAL RESULTS
71
topics are covered by group policies. Find an overview of the
United Nations Declaration on the Rights of Indigenous Peoples
pillars, targets and policies here. The five pillars are aligned with
(UNDRIP), and takes particular care to avoid infringing them.
CLIMATE AND NATURE RISK
The effects of climate change, such as extreme weather events,
fluctuating seawater temperatures and a decline in biodiversity,
could have a significant financial impact in the coming decades.
Knowledge of the possible financial consequences of global
warming, biodiversity loss, or even ecosystem collapse, and
the integration of climate risk and nature risk as a separate
risk category, are an essential part of Grieg Seafood’s risk
management strategy. Grieg Seafood aims to increase its
understanding of climate and nature-related risks, in order to
find solutions to reduce adverse impacts.
The Group has mapped its climate-related risks, which is
reported in accordance with the recommendations of the
Task Force on Climate-related Financial Disclosures (TCFD).
The Group has also prepared a climate-related scenario
analysis, assessing the impact of transitional risks and physical
risks. These risks and opportunities are included in the risk
assessment as part of the Group’s regular forecast process.
Overall, the impacts of climate-related risks are expected to be
moderate in the short term, with no quantifiable impact as per
year-end 2023. However, these impacts could become more
severe in the medium to long term. Any significant physical
change is likely to interfere with the Group’s current business
model or damage facility infrastructure, both of which could
be costly. Similarly, the transitional risks related to increased
climate-change regulation or significant changes in consumer
preferences could affect the Group’s bottom line and access to
capital. On the other hand, Grieg Seafood is being uniquely placed
to mitigate these risks and take advantage of climate-related
opportunities. The Group’s Climate Action Plan describes the
measures and investments needed to reach the climate targets
(reducing carbon emissions by 35% towards 2030, and 100%
in 2050, with 2018 as a baseline year). This plan stresses the
importance of both operational measures that affect Scope 1 and
2, and supply chain measures in Scope 3. The Group needs to
reduce operational fossil fuel consumption, purchase renewable
electricity and set supplier requirements to be able to reduce
its absolute emissions. The Group needs to continue to invest in
electrification of its sites and boats, choose fish feed that has a
lower emission factor and reduce emissions from transportation.
The largest direct source of emissions is from the fuel that
powers the boats, use of well-boats, vehicles, and on-site
electricity generators. Transitioning to equipment that will enable
reduction in fossil fuel consumption will be done gradually
through replacement investments, in addition to investments
targeting growth. Before making any investments, the Group
evaluates the potential carbon emissions and environmental
impact of the investment. This is an integrated part of the
Group’s CapEx process. To get a full overview over how these
climate-related risks and opportunities may evolve and affect
the Group, likelihood and impact analyses under different
emission pathways and time horizons have been developed and
will be regularly revised. The Group’s TCFD report, including the
climate-related scenario analysis, is available here.
PART 03 - OUR FINANCIAL RESULTS
The Group also acknowledges that biodiversity, diversity within
and between species, and diversity of ecosystems, is declining
globally faster than at any other time in human history. Nature
and ecosystems provide the basic building blocks of the global
economy, and biodiversity loss and ecosystem collapse will
also affect the Group’s operations, supply chains and markets.
Grieg Seafood is a Member of the Taskforce on Nature-related
Financial Disclosures (TNFD). TNFD has published a risk
management and financial disclosure framework on nature-
topics assessed as material according to the GRI standards. The
GRI Index is included in Part 4 of this Annual Report. The Group
has also prepared an overview of the material topics’ financial
impacts in Part 1 of this report.
The Group has a responsibility to protect biodiversity wherever
it operates. The aim is to use farming methods that allow co-
related risks, and will support organizations to report and act on
existence with other species, such as wild salmon, cod, shrimp,
both their impacts and dependencies on nature. Grieg Seafood is
wild mammals and birds. The Group has targets to minimize its
committed to start publishing nature-related disclosures using
impact on biodiversity, and has adopted policies and operational
the TNFD Recommendations as of the financial year 2024. For
procedures, as well as high technical standards on equipment,
further information, visit the TNFD’s website.
The salmon farming industry is regulated to avoid impact
on biodiversity and the marine environment. In addition,
certifications like the Aquaculture Stewardship Council (ASC)
help raise the bar above regulatory limits. As of year-end,
81% of the Group’s harvested volume in 2023 was ASC certified.
to reduce the risk of impact. Environmental impact assessments
are performed prior to establishing new seawater sites as well
as a part of the continuing ASC certification process. Please refer
to the regional sections in Part 2 of this report for information
relating to use of treatments and medicines, escape, wildlife
interaction and local emissions.
Grieg Seafood acknowledges that there are still challenges to
Along with the rest of the industry, the Group needs to develop
overcome and believes that preventive farming is key to reducing
new feed ingredients in order to grow sustainably. The Group
the Group’s impact on both the climate and nature. Several
of the Group’s ongoing initiatives target climate and nature-
related challenges, such as shortening the time the fish spend
at sea and are exposed to risks; using real-time ocean data,
data analytics, machine learning and artificial intelligence to
does not produce its own fish feed, but set requirements for the
feed suppliers to develop more sustainable feed. Input factors in
fish feed, both marine ingredients and plant-based ingredients,
should come from sustainable sources. Ingredients associated
with a high risk (fish meal and fish oil from fisheries, Brazilian
better predict outcomes and implement mitigating actions early;
soy and palm oil) are certified by recognized certification
and experimenting with new farming technologies that create
barriers between the fish and the natural environment, such
as semi-closed sea-based systems, land-based farming and
offshore farming.
CORPORATE SOCIAL RESPONSIBILITY
Grieg Seafood’s vision “Rooted in nature – farming the ocean
for a better future” demonstrates the Group’s commitment to
corporate responsibility by operating profitably and sustainably
in a manner that conforms with fundamental ethical norms
and respect for the individual, society and the environment.
Sustainable operations underpin the Group’s license to
operate and its strategy. In a long-term perspective, there is
no contradiction between clean seas, healthy fish and financial
profit. It is the Group’s task to make these aspects go hand in
hand and contribute to a sustainable ocean economy. The targets
go beyond short-term profitability. Read more about the Group’s
foundation, value chain and strategy in Part 1 of this Annual
Report.
Grieg Seafood’s sustainability strategy is built on material topics
and the five pillars: Healthy Ocean, Sustainable Food, Profit
& Innovation, People, and Local Communities. These pillars
are founded on external expectations, based on dialogues with
stakeholders, and the company’s own goals and ambitions. The
schemes. The Group has also committed to a deforestation
statement. Read more about the Group’s work on sustainable
feed ingredients in Part 2 of this report.
While farmed salmon has a low carbon footprint compared to
other animal proteins, the industry must do more to contribute
to the Paris Agreement’s climate goals. New technologies
must be developed to cut emissions in our own operations and
value chain. The Group has a policy for climate action, and has
set a Science Based Target for emission reduction. The Group
undertakes climate accounting and performs a systematic
assessment of its emissions, for Scope 1, 2 and 3. For more
information on the Group’s climate action plan and emission
reductions, see the climate action section in Part 2 of this report.
The Group is grateful to the local communities for giving
permission to farm salmon in their fjords and inlets. In
return, the Group not only does what it can to safeguard local
biodiversity and apply sustainable farming methods, but also
aims to contribute to vibrant local communities in the rural
areas in which it operates. See the end of each regional section
for information on our contribution to local communities. Grieg
Seafood has a responsibility to engage in constructive dialogue
with all stakeholders and groups that are impacted by its
activities. In British Columbia, Grieg Seafood is farming in areas
that belong to indigenous peoples, while Finnmark has long been
home to the Sami people. Grieg Seafood recognizes that these
groups have special rights, as acknowledged in the
RESEARCH AND DEVELOPMENT AS PART OF
ACHIEVING SUSTAINABLE GROWTH
The main objective of Grieg Seafood’s R&D activities is to create
value, ensure sustainability and promote innovation in the Group.
The activities and priorities are anchored in the Group’s strategy.
A continuous process of identifying the most important issues to
be addressed forms the basis for R&D activities.
The project portfolio covers most areas of Grieg Seafood’s value
chain. The majority of projects are related to fish health and
welfare, environmental documentation and impact, nutrition
and feeding, as well as novel and improved production methods
both in the freshwater and the seawater phases of production.
An internal R&D strategy provides guidance in the process of
project prioritization and qualification to secure each project's
relevance and industry value. Projects are aligned with the needs
of the farming regions in order to ensure the relevance and
potential applicability of the planned endeavors. Meeting with
the farming regions are regularly carried out to discuss R&D
needs. Short descriptions of the ongoing projects are available
in an internal project archive, and finalized projects and results
are shared throughout the Group and with external participants,
if applicable. The global functional team for R&D works
continuously with the farming regions to facilitate the operational
implementation of the R&D results.
EMPLOYEES AND HUMAN RIGHTS
As an industry with global supply chains both upstream and
downstream, Grieg Seafood has a responsibility to respect and
promote human rights both at its own operations and in its
value chains. The Group has a Human Rights policy and Code of
Conduct in place, and adheres to various related global principles
and practices. The Group also requires its suppliers to abide by
its Supplier Code of Conduct. In accordance with the Norwegian
Transparency Act, the Group published its first human rights
progress report in June 2023. The report provides an account of
the due diligence conducted, findings and actions.
To reach goals and solve challenges, Grieg Seafood needs the
best people, regardless of their gender, age, ethnicity, origin, or
political, religious, or sexual persuasion. The Group embraces
diversity and is committed to being an equal opportunity
employer. This is reflected in the Group’s Gender Equity policy
and the Diversity policy. At year-end 2023, the majority of the
Group’s employees, including managers, are men. The Group
aims to have 40% female representation in management
positions and in positions such as supervisors, site managers
and other administrative positions, by 2026. At year-end 2023,
the Group had 33% female representation in the Group executive
team, while 50% of the regional farming directors were female. In
total, 837 people were employed at the Group as at 31 December
2023, of whom 235 (28%) were women and 602 (72%) were men.
The Group conducts annual assessments of its pay structure to
72
CORPORATE GOVERNANCE
Strong corporate governance is essential to achieving the
Group’s objectives and acting as a responsible organization.
EU TAXONOMY
As a non-financial company Grieg Seafood reports on revenue
(turnover), capital expenditure and operating expenses that are
The Group’s governance system includes its vision, core values,
associated with EU Taxonomy-aligned and -eligible activities, in
strategies, objectives, operational performance, impact on the
economy, environment and people, and related risk, as well as
accordance with the Taxonomy Regulation (EU) 2020/852 and the
Delegated Acts. The company’s statement on EU Taxonomy for
compliance with laws and regulations. Grieg Seafood ASA seeks
sustainable economic activities are disclosed in part two of this
to comply, where applicable, with the Norwegian Code of Practice
report.
identify any pay gaps between men and women performing jobs
of equal value. Non-administrative positions are covered by
labor union agreements and there are no differences between
women and men. The only differences that may occur are based
on seniority, which is also regulated by union agreements. The
Group uses the Korn Ferry methodology to benchmark salaries
and benefits against the market. Salaries that are not on the
median level are adjusted according to the benchmark – both for
women and men. The Group’s positions and pay structure are
based on a matrix where all positions are given a score/number
based on their responsibility, mandate and content. There is no
gender-based discrimination in this matrix. Salaries are based on
roles and responsibility, not on gender, cultural background or
place of origin. The Group offers flexible working hours to office
staff and seeks to ensure a good work-life balance throughout
its operations. The goal is to attract the best skills, improve
workplace diversity and to be the preferred employer, regardless
of industry. A good working environment creates attractive jobs,
and the Group has established and lives by the values: Open,
Ambitious and Caring. For the sixth time in Norway, and the
fifth time globally, the Group participated in the Great Place to
Work survey. The Board is proud to announce that all regions
maintained the Great Place to Work certification in 2023.
The Group also works systematically to safeguard its employees’
health, safety and working environment. The aim is to prevent
work-related injuries, illness, accidents and fatalities. The
Group expects nothing less from its supply chain. Human
resources are managed locally in compliance with local rules
and regulations, and in accordance with the Group’s guidelines.
The Group is working continuously to strengthen global routines
and guidelines for human resources and health and safety
throughout the Group, and actively seeks to reduce sick leave
and the number of health and safety incidents. All such incidents
are registered and reviewed as part of monthly HSE meetings.
Read more about how the Group is committed to safeguarding its
employees and the results of this work in the People section of
this report.
To strengthen the corporate culture and encourage employee
loyalty, Grieg Seafood continues to give its employees the
opportunity to become company shareholders through the annual
share-purchase program. Through this program, participants
receive a 30% discount on the purchase price of shares. The
maximum number of shares per employee in 2023 was 759.
There is a lock-up period of 18 months for the shares. Primary
insiders employed by Grieg Seafood ASA are also eligible under
the share program.
for Corporate Governance issued by the Norwegian Corporate
Governance Board (NUES). The Group follows NUES’s latest
recommendations and has updated its existing rules and defined
values in accordance with changes to the Norwegian Code of
Practice published in 2021. The company’s corporate governance
policies and practices are disclosed in the Corporate Governance
section of this report.
Business integrity is essential for the Group, which has zero
tolerance for fraud, corruption or other misconduct. In 2023,
there were no reported incidents of corruption. There was one
reported whistleblowing case, from one employee claiming
unlawful terminations and work-related concerns. The claim was
closed after an external investigation. The Group investigates
misconduct and whistleblowing situations with third-party
assistance to ensure justice and objectivity.. The whistleblower
channel, operated by EY, is available for the employees and
external stakeholders to report any unwanted behavior and
breaches of the Group’s Code of Conduct. The Group has
established grievance mechanisms for external parties and local
communities, available through the Group’s regional websites.
No incidents involving infringement of the rights of indigenous
peoples were reported in 2023.
The company’s reporting on corporate social responsibility is
based on several standards, such as the Euronext guidance on
ESG reporting, the OECD Guidelines for Multinational Enterprises
and the Global Reporting Initiative (GRI). Grieg Seafood is also
committed to the UN Global Compact, and has signed the
Sustainable Ocean Principles. Corporate social responsibility
reporting is integrated in this Annual Report.
The Board has assessed the Group’s achievements in relation
to the above-mentioned topics as part of the sustainability
scoreboard, see “Targets and achievements” at the beginning of
the Board of Director’s report. Overall, the Board is satisfied with
the Group’s achievements and efforts in relation to corporate
social responsibility and the management of the Group’s impact
on the economy, environment and people in 2023. The Group
will continue working to reduce or minimize its impact on the
needs stable regulatory conditions to be able to grow in a
sustainable manner going forward. In Norway, the resource
rent tax that was adopted by the Norwegian Parliament on 31
May 2023, with a tax rate of 25% effective from 1 January 2023,
has generated a lot of uncertainty. Overall, salmon farming in
Norway may lose competitiveness compared to aquaculture in
other countries. With new technologies being developed, where
there is no reliance on a coastline with naturally tempered water,
aquaculture investors may find it more attractive to invest and
develop the industry in places with lower tax levels. This might
have a tremendous impact on local communities on the coast
where salmon farming takes place, and also throughout the
supply chain.
For the past 25 years, literally all new fish volumes have come
from aquaculture. Wild fishing has long had to cope with smaller
catches, quotas and other regulatory restrictions. Since 1990,
the volume of farmed fish has multiplied more than six-fold, with
salmon making up less than 2.5% of the volume. In line with the
ongoing global megatrends relating to health and sustainability,
there has been growing interest in the health and potential
environmental benefits of sustainable aquaculture. Currently,
Europe is the largest and most mature market for Atlantic
salmon, consuming more per capita than other continents. There
are, however, countless ongoing initiatives to introduce salmon
to a larger number of new consumers across the globe. An
increase in consumption per capita in large markets and growing
economies such as the USA, Brazil, China and India is expected to
contribute to rising demand for Atlantic salmon over time.
According to Kontali, the global harvest of Atlantic salmon in
2024 is expected to increase by 2% compared to 2023, and come
to 2 857 600 tonnes (whole fish equivalent, WFE). With limited
supply growth in 2024, combined with an outlook for continuing
strong demand fueled by an increased focus on healthy food and
sustainably produced proteins, the Group currently (at the time of
publishing this report) believe in sustained strong market prices
in 2024. The Board acknowledges that there is a natural and
inherent uncertainty related to estimated future market demand,
trends, growth, and outlook in general. However, looking into
2024, we remain cautiously optimistic, recognizing both the
opportunities and challenges that lie ahead.
EVENTS AFTER THE REPORTING DATE
On 25 January 2024, Grieg Seafood received a Statement of
Objections (SO) from the European Commission related to its
investigation of potential anti-competitive behavior regarding the
sale of farmed Norwegian Atlantic salmon which was launched
back in 2019. The issuance of a SO is a common and formal step
in the process without prejudice of the final outcome, where the
European Commission sets out its preliminary view in the matter.
On 9 February 2024, the Federal Court in Canada approved the
settlement agreement dated 22 September 2023 entered into by
the plaintiffs and Grieg Seafood regarding the proposed three
class-actions in Canada.
On 13 and 14 February 2024, Grieg Seafood ASA and Grieg
Seafood UK Limited have received a service letter according to
which certain claimants filed a claim for damages against, among
other, Grieg Seafood ASA and Grieg Seafood UK Limited arising
from alleged unlawful cartel arrangements in relation to the
supply of farmed Atlantic salmon.
In general, Grieg Seafood denies any anti-competitive conduct
whether it is in regard to the EC investigation, the claim filed
in the UK or any possible future claims related to this matter
subsequent to the issuance of the SO. We will continue to
collaborate with the European Commission and follow up all
processes as it deems appropriate.
OUTLOOK
environment, to have a positive social impact and maintain strong
health and environmental considerations.
improved in to the first quarter of the year. The Group’s farming
The Group has guidelines for management remuneration,
available here and the Remuneration Report for 2023 is
available here.
corporate governance.
The Board wishes to thank all employees for their dedication,
efforts and contributions in 2023.
There is a consensus in the market that the existing coastal,
open-pen aquaculture industry will achieve modest organic
growth. This will primarily be driven by the opening of new sites
and areas for sea farms, new and improved technologies and
farming practices, and better cooperation both between industry
players and with the public authorities. The industry
operations are running as normal, and salmon is being harvested
according to plan. The emphasis is on continued optimization of
production, focusing on fish health and welfare.
During 2023, an improvement program was launched to review
all aspects of the Group’s operations. In addition to improving
operational efficiency and profitability, the Board also expects
PART 03 - OUR FINANCIAL RESULTS
73
MARKET EXPECTATIONS, CHALLENGES AND
POSSIBILITIES
The outlook for the salmon farming sector remains promising.
OWN OPERATIONS
In 2024, Grieg Seafood expects to harvest a total of 81 000 tonnes
GWT. At the time of issuing this report, biological production was
Demand for high-quality, sustainably sourced protein continues
good in all regions. Grieg Seafood Finnmark had some issues
to grow worldwide, driven by increasing consumer awareness of
with string jellyfish at the start of 2024, however the situation
that the program will contribute to cost-reductions of NOK 150
operations in British Columbia, with significant sales and market
million over the next two years.
experience. With proximity to important markets on the US
East Coast, the Newfoundland region significantly strengthens
The Board has, at the start of 2024, approved the investment in a
the Group’s US market exposure and opens for synergies with
new 10 000-12 000 tonnes capacity secondary processing facility
existing operations, as the Group should be able to provide a
at Oslo airport. This will improve the utilization of production in
more stable supply to the US market. However, developing the
Norway and reduce risk related to lower superior share, while
Canadian operations require substantial investments at a time
also provide increased flexibility and efficiency in the farming
when the resource tax in Norway and global inflation requires
operations. The facility is expected to be up and running in 2025.
greater capital discipline. The Group is committed to take the
Based on the results achieved so far with post-smolt in Rogaland,
term partners to take part in the development of the Canadian
the Board has chosen to prioritize a post-smolt expansion in
operations. A process to identify potential partners has been
Finnmark of NOK 1.1 billion as the major investment the next
initiated.
next step of the growth journey in Canada and are inviting long-
years. Post-smolt is expected to drive biological control, earnings
and sustainability. The construction of a new post-smolt unit
in Grieg Seafood Finnmark commenced at the end of 2023. The
company is targeting a capacity increase of 3 000 tonnes of post-
smolt from 2026.
The Board still believes that the Canadian operations have
untapped growth potential, while also having the advantage of
being close to one of the largest and fast-growing markets for
Atlantic salmon. North America is one of the world’s fastest
growing market for Atlantic salmon, but only one sixths of the
demand is currently met by North American production. The
Group already has a position in this market through its
FINANCIAL POSITION
As at 31 December 2023, Grieg Seafood was in a good financial
position, with NOK 216 million in cash and cash equivalents and
NOK 887 million of undrawn credit facilities as at 31 December
2023.
GOING CONCERN
The Board is of the opinion that the financial statements give a
true and fair presentation of the Group’s assets and liabilities,
financial position and financial results. Based on the above
presentation of the Group’s results and financial position, and
in accordance with the Norwegian Accounting Act, the Board
confirms that the annual financial statements have been
prepared on a going concern basis, and that the requirements for
so doing have been met.
STATEMENT FROM THE BOARD OF
DIRECTORS AND THE CEO
We hereby confirm that, to the best of our knowledge, the
financial statements for the period from 1 January to 31
December 2023 have been prepared in accordance with
applicable accounting standards and give a true and fair view
of the Group and of the Group’s assets, liabilities, financial
position and overall results. We also confirm that the Board of
Directors’ Report gives a true and fair view of the development
and performance of the business and the position of the company
and the Group, as well as a description of the principal risks and
uncertainties facing the company and the Group.
Bergen, 21 March 2024
The Board of Directors and CEO of Grieg Seafood ASA
PER GRIEG
Chair
TORE HOLAND
Vice Chair
KATRINE TROVIK
Board Member
RAGNHILD JANBU FRESVIK
Board Member
MARIANNE RIBE
Board Member
NICOLAI HAFELD GRIEG
ANDREAS KVAME
Board Member
CEO
PART 03 - OUR FINANCIAL RESULTS
74
CORPORATE
GOVERNANCE
Grieg Seafood believes that strong corporate governance is an essential element
in achieving our overall objectives and acting as a responsible organization.
Our vision “Rooted in nature – farming the ocean for a better future”
demonstrates our commitment to corporate responsibility by operating
profitably and sustainably in a manner that conforms with fundamental
ethical norms and respect for the individual, society and the environment.
PART 03 - OUR FINANCIAL RESULTS
COMPONENTS OF CORPORATE GOVERNANCE
A sound corporate structure, with viable decision-making
processes, a clear division of responsibility and authority,
appropriate information and communication processes as well
as remuneration and reward schemes, is key to Grieg Seafood
being able to achieve its strategic goals and objectives. The main
components of the Group’s corporate governance consist of
objectives and directions, structure, organizational planning and
management as well as learning and improvement. Together
with the external context, these components underpin our
ability to create value and achieve goals. Our operations are
clearly connected with a multitude of external expectations.
We, therefore, seek to maintain a regular dialogue with our
stakeholders, as they are the basis for our social license to
operate. Transparency and disclosure are vital in building trust,
and engaging in a dialogue with our stakeholders enables us to
better understand the role we play in local communities and in
the society as a whole.
GOVERNANCE STRUCTURE
The shareholders are the owners of the company, and the
General Meeting, which all shareholders are invited to attend,
is the supreme governing body of the company. The General
Meeting provides instructions to the Nomination Committee,
which safeguards shareholders’ interests by nominating Board
members to be elected by the General Meeting. The Board of
Directors is setting the strategy and overseeing the conduct and
management of Grieg Seafood. The Board’s responsibilities to
ensure good corporate governance include setting and approving
the vision, core values, strategies, objectives, plans, budgets and
overall organization of the operations, monitoring operational
performance and due diligence, as well as the company’s impact
on the economy, environment, people, and related risks, as well
as ensuring compliance with laws and regulations.
The Board nominates its members to specific committees
(Audit Committee and Remuneration Committee) to provide
counsel and advice or to handle tasks on the Board's agenda.
The Audit Committee members have a particular responsibility
for overseeing the integrated reporting process, the audit
process, the company's system of risk management, internal
controls and compliance with laws and regulations. The role of
the Remuneration Committee is to establish and maintain an
appropriate rewards policy that attracts and motivates executives
to achieve the short and long-term interests of shareholders.
The Board has delegated the management of the Group’s overall
operations and resources to the CEO. The CEO’s responsibilities
include establishing a vision, core values, strategies, objectives,
plans and budgets for the Group. The CEO is also responsible for
establishing and approving group policies, and is accountable
for the Group’s operational performance and its impacts on
the economy, environment and people. In addition, the CEO is
responsible for managing related risks and ensuring compliance
with laws and regulations. The CEO acts as the main point of
communication between the Board and the Group’s operations,
and is the public face of the Group, responsible for stakeholder
engagement. The CEO is also responsible for establishing rules
for handling possible conflicts of interest.
The CEO delegates authority and responsibility to the group
executive management team, from where responsibilities
cascade throughout the Group. The executive management
team, which consists of senior executives representing all
aspects of the Group’s operations, is responsible for establishing
operational plans and targets, allocating resources to its
members’ specific functions and following-up their operational
performance. In 2023, the executive team consisted of the
Chief Financial Officer (CFO), two Chief Operational Officers
(COO, responsible for farming operations in Norway and
Canada), the Chief Commercial Officer (CCO, responsible for
the sales function), in addition to the supporting functions lead
by Chief Technology Officer (CTO), the Chief Human Resource
Officer (CHRO), the Chief Communication Officer, and the
Chief Strategy Officer. The executive management team is
responsible for implementing group policies, monitoring their
functions’ impacts on the economy, environment and people,
managing related risks and securing compliance with laws and
regulations. This also includes adhering to our Code of Conduct
and ensuring that responsible business conduct underpins all
activities. The executive management team is responsible for
ensuring that employees receive the proper training of policy
commitments. The CEO and the group executive management
team together engage with the Group’s stakeholders, which is
key to be able to grasp emerging opportunities for the Group,
and at the same time to understand and mitigate economic,
environmental and social risks. Results of stakeholder
engagement is reported to the Board as part of risk management
procedures and regular business updates in Board meetings. See
examples of stakeholder engagements in Part 4 of this report.
The CEO has delegated the establishment of group policies
to the Sustainability Steering Committee, which prepares and
updates them on the basis of a holistic assessment of economic
and environmental, social and governance (ESG) issues (the
materiality assessment). Relevant organizational functions and
expertise take part in preparing the policies. The policies are
approved by the CEO while the Board of Directors monitors
compliance with the policies. Policies are presented to the group
management team and the regional management team, and
are available to all employees through the internal Governance,
Risk and Control system. We have a special focus on our Code
of Conduct, where the employees are required to complete a
program every second year. In 2023, 87% of our employees
completed the Code of Conduct program. Our policies are
available to the public through our website. The group policies
contain a set of targets and Key Performance Indicators (KPIs),
of which most are included in the sustainability scoreboard in the
company’s quarterly and annual reports as part of the material
topic they relate to. As such, the Board, and in particular the
Audit Committee, reviews and approves the Group’s performance
with respect to material topics, including the management of its
75
impact on the economy, environment and people. Combined with
International/OECD, aquaculture is not assessed as an industry
Furthermore, three class-actions were filed in Canada (none
the quarterly risk assessment and the review of the quarterly and
of high risk for corruption. Our risk assessments in 2023, which
has been certified as a class-action). Even though Grieg Seafood
annual report, the Audit Committee and the Board are advancing
included all of our sales and farming operations, did not uncover
considers the complaints to be entirely without merit, Grieg
their knowledge on sustainable development. Additionally,
any significant risks that required specific mitigation actions.
Seafood have agreed to a settlement offer from the plaintiffs and
the Audit Committee has been presented a detailed ESG
None of the countries in which we operate were considered
entered into a respective settlement agreement in September
stakeholders analysis in 2023.
high-risk countries according to the Transparency International
2023 as the costs of litigation in Canada can be substantial. The
Corruption Perception Index. We did not experience any incidents
settlement agreement was approved by the Federal Court in
RESPONSIBLE BUSINESS CONDUCT
Our values and Code of Conduct underpin the way we conduct
of corruption or money laundering activities in 2023. We had no
February 2024.
corruption incidents that resulted in the termination or non-
ourselves and our approach to responsible business behavior.
renewal of contracts with a business partner. We will continue to
A claim has been filed for damages in the UK against, among
Our Code of Conduct sets out the ethical principles and standards
perform these risk assessments.
that must be upheld by each and every employee, and any
agent that acts on our behalf, including our Board of Directors.
Our policies stipulate our mechanisms for grievance and
Through our Supplier Code of Conduct, we demonstrate that
remediation of negative impacts, as well as for seeking advice
others, Grieg Seafood ASA and Grieg Seafood UK Limited arising
from alleged unlawful cartel arrangements in relation to the
supply of farmed Atlantic salmon. Grieg Seafood rejects that there
is any basis for the alleged claim and considers the complaint to
we expect no less from our supply chain. A large share of our
and raising concerns. We aim to have an open and transparent
be entirely unsubstantiated.
suppliers, in purchase value, have signed the Supplier Code of
dialogue with all our stakeholders, and regularly meet with
Conduct. Additionally, our Procurement policy provides global
stakeholders as well as invite them to our sites. Our employees
In general, Grieg Seafood denies any anti-competitive conduct
standards for how we source goods and services. Through our
can raise any concerns about our business conduct, business
Human Rights policy, we recognize that we can contribute to the
relationships, or potential and actual negative impacts
whether it is in regard to the EC investigation, the claim filed
in the UK or any possible future claims related to this matter
fulfillment of human rights. We have a responsibility to prevent,
through our whistleblower channel. All reported incidents are
subsequent to the issuance of the SO. Grieg Seafood will continue
mitigate, and address adverse human rights impacts in our own
investigated and reported to the CEO and Board of Directors.
to collaborate with the European Commission and follow up all
operations, but we also use our leverage to promote respect for
Employees can also raise concerns through their line manager
processes as it deems appropriate.
COMPLIANCE
We aim to comply with all relevant laws and regulations in
the regions in which we operate. Salmon farming is a highly
regulated industry, and we are subject to strict standards for fish
welfare, environmental impact, food production and production
equipment. We must comply with operational requirements
related to the use of medicines and chemicals, biomass levels,
sea lice levels, stock density, water quality, etc. We report
regularly to public authorities on, for instance, biomass levels,
sea lice levels and disease outbreaks. We are also subject to
regular inspections and audits by local, national and international
stakeholder groups and authorities.
human rights in our value chain. Our approach to responsible
or HR functions, through their labor unions or relevant human
business conduct including human rights is based on the OECD
rights tribunals. Complaints by local communities or other
Guidelines for Multinational Enterprises, the OECD Due Diligence
stakeholders can be raised through meetings, through the
Guidance for Responsible Business Conduct, the UN Convention
regional websites or through the whistleblower channel. In 2023,
against Corruption, the UN Guiding Principles on Business and
we had one whistleblower case, where one of our employees
Human Rights, the Universal Declaration of Human Rights, the
claimed unlawful terminations and work-related concerns. The
ILO Declaration on Fundamental Principles and Rights at Work,
claim was closed after an external investigation. Our organization
the United Nations Convention on the Rights of the Child, the UN
investigates misconduct and whistleblowing situations with
Convention on the Elimination of Discrimination against Women,
third-party assistance to ensure justice and objectivity. We have
the UN Declaration on the Rights of Indigenous Peoples, and the
not received any concerns from external stakeholders, and
UN Global Compact.
as such have not provided any related remediation. While our
policies set out our commitments related to the environment and
Our policies set out guidelines and precautionary principles to
social impacts, we recognize that we can improve our grievance
enable adoption of precautionary measures. We are committed
mechanisms and remediation processes.
to respecting fundamental human rights in our operations, our
value chain, and in the communities where we operate. We
use our influence to promote the fulfillment of human rights
INVESTIGATIONS
In February 2019, the European Commission launched an
and always seek to avoid involvement, even indirectly, in their
investigation to explore potential anti-competitive behavior in
abuse. Please find the details of our commitment in the Human
the market for spot sales of fresh, whole and gutted Norwegian
Rights policy on our website. We also aim to conduct proper due
farmed Atlantic salmon. In January 2024, Grieg Seafood received
diligence when engaging with third parties. In June 2023, we
a Statement of Objections from the European Commission
published our first human rights due diligence report, covering
related to its investigation. The issuance of a Statement of
both our own operations and our supply chain, in line with the
Objections is a common and formal step in the process, where
Norwegian Transparency Act.
the European Commission sets out its preliminary view in the
matter. The Statement of Objections in no way prejudices the
Our policies state that we do not permit or tolerate engagement
final outcome of the European Commission’s proceedings.
in any form of corruption or money laundering activities. We
Subsequent to the Statement of Objections, the companies
also refrain from anti-competitive behavior, anti-trust and
monopolistic practices, as this can severely affect consumer
choice, pricing and other factors that are essential for efficient
salmon markets. As part of our risk management process,
we assess our operations for risks related to corruption and
implement mitigating measures or controls to prevent corruption
and money laundering activities. According to Transparency
concerned may examine the documents in the Commission’s
investigation file and present its views on the case, before the
Commission takes a decision on the matter. Grieg Seafood is
currently examining the Statement of Objections carefully and
continues to fully cooperate with the European Commission’s
investigation.
FIGURE 3.19
NON-COMPLIANCE WITH LAWS AND REGULATIONS
Area of non-compliance Description
Environmental
Leak of chlorine
Social
Economic
n/a
n/a
Fines (NOK)
1 400 000
0
0
Number of non-monetary
sanctions
Dispute resolution mechanisms
0
0
0
None
None
None
In 2023, we received a fine related to a chlorine spill at our harvesting facility in Alta that occured in 2021. An independent environmental assessment of the chlorine spill was
performed by a third party, which concluded that the spill had a limited local impact and that rapid recovery and recolonization of the seabed could be expected. We have not received
any other fines related to non-compliance, nor were any non-monetary sanctions imposed on us. Additionally, we did not have any significant instances of non-compliance (where
significant is determined to be any instance, except charges related to delayed reporting to authorities).
PART 03 - OUR FINANCIAL RESULTS
76
CORPORATE GOVERNANCE
PRINCIPLES
Adopted by the Company’s Board of Directors on 20 April 2007,
and updated on 21 March 2024.
FIGURE 3.20
GRIEG SEAFOOD'S COMPLIANCE WITH THE NORWEGIAN CODE OF PRACTICE FOR CORPORATE GOVERNANCE
Section of the Norwegian Code of Practice for Corporate Governance
Deviation from the Code of Practice
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Statement of corporate governance
Activities
Share capital and dividends
Equal treatment of shareholders and transactions with related parties
Negotiability
General Meeting
Nomination Committee
Corporate Assembly and Board of Directors - composition and independence
Work of the Board of Directors
Risk management and internal control
Directors' fees
Remuneration of executive personnel
Information and communication
Company takeovers
Auditor
No deviation
No deviation
No deviation
No deviation
No deviation
Two deviations, see below
One deviation, see below
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
No deviation
1. IMPLEMENTATION AND REPORTING ON CORPORATE GOVERNANCE
PRESENTATION OF CORPORATE GOVERNANCE
Responsibility for ensuring that the company has good corporate governance rests with the Board of Directors (the Board). The Board
reviews the updates Grieg Seafood Group’s corporate governance policy, which is part of the Group’s governing framework and forms
the basis of this summary. Grieg Seafood’s principles for corporate governance are based on standards such as the Norwegian Code of
Practice for Corporate Governance as recommended by the Norwegian Corporate Governance Board (NUES), the Institute of Internal
Auditors Norway’s guidelines for governance, in addition to best practices from, for example, the Euronext guidance on ESG reporting,
the OECD Guidelines for Multinational Enterprises and the Global Reporting Initiative (GRI).
The company abides by the latest Norwegian Code of Practice for Corporate Governance as recommended by the Norwegian Corporate
Governance Board (NUES), published 14 of October 2021. The company has adopted the “follow or explain principle” with respect to the
Code’s application. This means that the company provides an explanation whenever it deviates from the Code of Practice.
Deviations from the Norwegian Code of Practice: None
PART 03 - OUR FINANCIAL RESULTS
77
2. BUSINESS
3. EQUITY AND DIVIDENDS
GRIEG SEAFOOD ASA
The company's business is defined in Article 3 of its Articles of Association: “The object of the company is to engage in the production and
EQUITY
At any given time, the Group shall have a level of equity and a capital structure that is appropriate to the Group’s cyclical activities. The
sale of seafood and in naturally related activities, including investment in companies engaged in the production and sale of seafood and in
Board requires that, as a minimum, equity consistently complies with current loan covenants.
other naturally related activities.”
The company is established and registered in Norway, and is required to comply with Norwegian law, including laws and regulations
equity ratio of 1.0. The Board of Directors considers the current capital structure to be satisfactory in relation to the company’s objectives,
pertaining to companies and securities.
strategy, and risk profile.
As at 31 December 2023, the company's consolidated equity totaled NOK 6 669 million, equivalent to 49% of total assets and a debt-to-
GRIEG SEAFOOD ASA’S VISION, TARGETS AND STRATEGY
In keeping with Grieg Seafood’s vision “Rooted in nature - farming the ocean for a better future”, we demonstrate our commitment to
corporate social responsibility by operating profitably and sustainably in a manner that conforms to fundamental ethical norms and
DIVIDEND
The Group’s objective is to give shareholders a competitive return on invested capital through dividend payments and appreciation in the
respect for the individual, society as a whole and the environment. Through its five pillars, Grieg Seafood is committed to creating
value of the share, at a level at least equivalent to other companies with comparable risk.
sustainable and long-term value. Sustainability is fundamental to the industry and strongly impacts our financial performance. Our
strategy comprises three key strategic objectives for continued business development: global growth, cost improvement and value chain
Any future dividend will depend on the Group’s earnings after taxes, financial situation and cash flow. The Board believes that the dividend
repositioning. Increasingly sustainable farming practices underpin all areas of the strategy.
paid should keep pace with the Group’s profit growth, while at the same time ensuring that equity remains at a healthy and optimal level.
In addition, the Board must ensure that there are adequate financial resources to pave the way for future growth and investment, and
The Board is committed to sound corporate governance, and our governance structure helps enable the Board to fulfil its fiduciary duties
meet its desire to minimize capital cost.
and ensure our long-term success. The Board has established objectives, strategies and risk profiles for the company’s defined business
scope, in order to create value for its shareholders. The Board has an annual plan for its endeavors and follows a five-year cycle in its
The Board has adopted a dividend policy whereby the average dividend, over a period of several years, should correspond to 30-40%
strategy work. This includes a review of risk areas and internal controls, as well as approving the strategy, objectives and risks relating to
of profit after tax before fair value adjustment of biological assets (limited to 50% by Green Bond terms). Furthermore, although a net
sustainable development.
interest-bearing debt per harvested kg of up to NOK 40 is considered reasonable, it may be exceeded in periods of growth-related
investments. Based on this, the size of the dividend could be adjusted within the margin set out above.
The company aims to comply with all relevant laws and regulations, and with the Norwegian Code of Practice for Corporate Governance.
This also applies to all companies controlled by the Group. Therefore, to the extent possible, this statement of principle also applies to
In 2023, the Group distributed a dividend of NOK 4.5 per share to shareholders, which corresponds to 48% of the net profit before fair
all companies within the Group. The company has its own Code of Conduct, which all employees and contract workers must abide by. The
value adjustment of biological assets for the 2022 fiscal year.
company also has its own Supplier Code of Conduct, which all suppliers are expected to comply with.
MANAGEMENT OF THE GROUP
Control and management of the Group is divided between the shareholders, represented by the General Meeting, the Board of Directors
and the CEO, and is exercised in accordance with prevailing company legislation.
Deviations from the Norwegian Code of Practice: None
BOARD AUTHORIZATIONS
The Board can ask the Annual General Meeting (AGM) to grant a general mandate to pay out dividends in the period until the next AGM. An
explanation must be given for the Board´s proposal. The dividend will be based on the Group's current policy. Dividends should be paid on
the basis of the last financial statements approved within the scope of the Norwegian Public Limited Companies Act. Upon authorization
being granted, the Board determines the date from which the shares are to be traded ex-dividend.
The Board has a general authorization to increase the company’s share capital through share subscriptions for a total amount not
exceeding NOK 45 378 816, divided into 11 344 704 shares at the nominal value of NOK 4 each. The authorization covers merger decisions
as provided for in Section 13-5 of the Norwegian Public Limited Companies Act. The Board is entitled to increase the share capital on
several occasions and may itself determine the amount of the share capital increase in each case.
The Board has a general authorization to acquire the company’s own (treasury) shares in accordance with the provisions of Chapter 9 of
the Norwegian Public Limited Companies Act for an aggregate nominal amount not exceeding NOK 45 378 816. The company shall pay not
less than NOK 4 per share and not more than NOK 240 per share when acquiring treasury shares. No treasury shares were acquired in
2023. See Note 24 to the Group Accounts.
All the authorizations remain in effect until the next AGM, but not later than 30 June 2024. Going forward, the company will observe the
Norwegian Code of Practice in respect of new proposals to authorize the Board to implement capital increases and acquire treasury
shares.
Deviations from the Norwegian Code of Practice: None
PART 03 - OUR FINANCIAL RESULTS
78
4. EQUAL TREATMENT OF SHAREHOLDERS AND TRANSACTIONS WITH RELATED PARTIES
6. GENERAL MEETINGS
SHARE CLASS
The company has one class of shares, and all shares carry the same rights. As at 31 December 2023, the company had
113 447 042 outstanding shares, including treasury shares.
TREASURY SHARES
If the company trades in its own (treasury) shares, the Norwegian Code of Practice’s provisions relating to the equal treatment of
shareholders and transactions with related parties shall be observed.
As at 31 December 2023, the company held 1 313 654 treasury shares.
APPROVAL OF AGREEMENTS WITH SHAREHOLDERS AND OTHER RELATED PARTIES
All non-immaterial transactions between the company and a shareholder, Board member, senior employee, or their related parties,
The shareholders are the owners of the company, and the General Meeting is the supreme governing body of the company. All
shareholders are invited to attend the Annual General Meeting (AGM) and Extraordinary General Meeting (EGM), if any. With respect to
the timing and facilitation of General Meetings, the Board of Directors will do its best to ensure that as many shareholders as possible
may attend and exercise their rights, thereby making the General Meeting an effective forum for the views of shareholders and the Board
of Directors.
The company’s AGM shall be held each year before the end of June. The Board will assess the meeting form (physically and/or digital).
The AGM shall consider and, if thought fit, adopt the annual financial statements, the integrated annual report and proposed dividend, and
the annual report on remuneration of executive personnel. It shall also decide other matters which under current laws and regulations
pertain to the AGM. Guidelines in accordance with the Norwegian Public Limited Liability Companies Act, Section 6-16a, and the
regulations about guidelines and reporting for remuneration of executive personnel were adopted by the AGM in June 2021. Pursuant
to Sections 6-16a and 6-16b of the Public Limited Liability Companies Act, the remuneration report shall be approved by the AGM. The
shall be subject to valuation by an independent third party. If the consideration exceeds one-twentieth of the company’s share capital,
remuneration guidelines shall be reviewed and approved every four years or earlier in the event of significant changes.
transactions of this kind shall be approved by the General Meeting, in so far as this is required under Section 3-8 of the Norwegian Public
Limited Companies Act. The company has adopted a policy for transactions with related parties/majority shareholders. There were no
The Board may convene an Extraordinary General Meeting (EGM) at whatever time it deems necessary or when such a meeting is
significant transactions with related parties in 2023. Day to day transactions with related parties have taken place under market conditions
required under current laws or regulations. The company’s auditor and any shareholder or group of shareholders representing more
in accordance with arm's length principle, and are described in Note 30 to the Group Accounts.
than 5% of the company’s share capital may require the Board to convene an EGM.
CAPITAL INCREASES
Should shareholders’ preferential subscription right be waived, the Norwegian Code of Practice shall be observed. There were no capital
increases in 2023.
The Board must give at least 21 days’ notice that a General Meeting is to be held. During this period, the notice and documents pertaining
to matters to be considered at the General Meeting shall be accessible on the company’s website. The same applies to the Nomination
Committee’s recommendations. When documents are made available in this manner, the statutory requirements for distribution to each
shareholder do not apply. Nevertheless, a shareholder may ask to be sent physical documents concerning matters to be considered at
Deviations from the Norwegian Code of Practice: None
the General Meeting.
5. SHARES AND NEGOTIABILITY
Shareholders who wish to attend the General Meeting in person or by proxy, must notify the company at the latest two working days
before the General Meeting.
Shareholders can vote on each individual matter (subject to statutory disqualifications), including on each individual candidate nominated
There are no limitations with regards to owning, or trading for the company’s share or voting right conferred by them.
for election. Shareholders unable to attend may vote by proxy. An authorization form containing a vote option for each agenda item will be
Deviations from the Norwegian Code of Practice: None
enclosed with the notice of meeting. Shareholders may also authorize the Board’s chair or the CEO to vote on their behalf.
The Nomination Committee proposes candidates for election to the Board by the AGM.
The company will publish the minutes of General Meetings in accordance with the stock exchange regulations, in addition to making them
available for inspection at the company’s registered offices. The minutes of meetings are available here.
The Board’s chair and the CEO will attend the General Meeting. The Board’s chair will normally chair the General Meeting. The Board will
ensure that, if it so requests, the General Meeting is also able to appoint an independent chair. A member of the Nomination Committee
will attend the General Meeting if they are likely to be needed or are available.
The Board shall not contact the company’s shareholders outside the General Meeting in a manner which could be deemed to constitute
preferential treatment or which could be in conflict with current laws or regulations.
In 2023, Grieg Seafood Group held its AGM on 27 June as a virtual meeting.
Deviations from the Norwegian Code of Practice:
GSF Group deviates from the Code of Practice in two ways.
1. The AGM is not led by an independent chair, but by the Board’s chair. This is in accordance with its Articles of Association. Given the
matters considered by the AGM, an independent chair has not been considered necessary. In cases that involve related parties, the AGM
is chaired by an independent Board member.
2. Not all members of the Board or the Nomination Committee attend the AGM. The Board of Directors considers it sufficient that the
Board’s chair is present. Other Board members and members of the Nomination Committee and Audit Committee attend as needed.
PART 03 - OUR FINANCIAL RESULTS
79
7. NOMINATION COMMITTEE
On 13 February 2009, the AGM approved a resolution to establish a Nomination Committee.. This is described in Article 9 of the Articles
of Association. At the same time, the AGM adopted instructions for the Nomination Committee. According to these instructions, the
Nomination Committee should safeguard the interests of the shareholders by nominating Board members according to principles set out
in the Norwegian Code of Practice for Corporate Governance. Instructions for the Nomination Committee were updated on 27 June 2023.
The present Nomination Committee was elected at the AGM on 27 June 2023.
Nomination Committee
Elisabeth Grieg
Marit Solberg
Erlend Sødal
Role
Chair
Member
Member
Considered independent
Served since
Term expires
No
Yes
Yes
12.06.2018
02.06.2021
27.06.2023
AGM 2024
AGM 2024
AGM 2024
The members of the Nomination Committee are elected for a term of one year. At least 2/3 of the Nomination Committee’s members
shall be independent of the Board. The CEO cannot be a member of the Nomination Committee. The Nomination Committee shall
have meetings with the directors, CEO and relevant shareholders. None of the members of the Nomination Committee are company
executives.
The Nomination Committee must ensure that the composition of the Board can safeguard the interests and independence of the
shareholder community and the company's need for expertise, capacity and diversity. Furthermore, the Nomination Committee
should consult relevant stakeholders to assess the need for changes in the composition of the Board. The Nomination Committee´s
recommendations to the AGM must be submitted well ahead of time and accompany the notice of the AGM, no later than 21 days before
the meeting. The Nomination Committee’s recommendations must include information about each candidate’s impartiality, competence,
age, education and professional experience. Upon proposal for re-election, the recommendation should include additional information
about how long the candidate has been a member of the Board, as well as details of their attendance at Board meetings.
All shareholders are entitled to submit proposals to the Nomination Committee for candidates to the Board of Directors and other
appointments. Proposals must be submitted to the Nomination Committee no later than two months prior to the AGM. Proposals should
be submitted via email to the chair of the Nomination Committee, Elisabeth Grieg, at elisabeth.grieg@grieg.no.
A proposal submitted to the Nomination Committee should include relevant information about the recommended candidates.
Deviations from the Norwegian Code of Practice:
GSF Group deviates from the Norwegian Code of Practice in one way.
8. BOARD OF DIRECTORS:
COMPOSITION AND INDEPENDENCE
BOARD MEMBERS
Pursuant to Article 6 of its Articles of Association, the company’s Board of Directors comprises three to seven members. The shareholder
elected Board members are elected by the General Meeting. Board members are chosen based on their competence and experience
representing the company’s need of expertise in various fields. The requirements for gender representation apply, i.e. if the Board has
three of four members, no more than two Board members may belong to the same gender and if the Board has five or more members, no
more than 60% of the Board members may belong to the same gender.
The Board’s chair is either elected by Board members or directly by the AGM. The chair of the Board is not an executive in the company.
In the event of a tied vote, the Board’s chair has the casting vote. The CEO is appointed by the Board and has both a right and a duty to
attend Board meetings but is not a member of the Board. The CEO is not entitled to vote on Board decisions.
ELECTION PERIOD
All Board members are elected at the AGM, for a one-year term. Board members may be re-elected.
INDEPENDENT BOARD MEMBERS
As at 31 December 2023, the Board of Directors consisted of the following non-executive members (whereof 50% men and women):
Name
Per Grieg
Tore Holand
Marianne Ødegaard Ribe
Katrine Trovik
Nicolai Hafeld Grieg
Ragnhild Janbu Fresvik
*Indirectly via the Grieg Group.
Male/
Female Role
Considered
independent
Served since
Term expires
2023 meeting
attendance
% of shares in GSF
per 31.12.2023
M
M
F
F
M
F
Chair
Vice chair
No
Yes
20.05.2009
AGM 2024
12.06.2018
AGM 2024
100%
100%
Board member
Yes
14.05.2020
AGM 2024
90%
Board member
Yes
14.05.2020
AGM 2024
Board member
No
04.11.2021
AGM 2024
100%
100%
Board member
Yes, part of the year
09.06.2022
AGM 2024
80%
51.06% *
0.00%
0.00%
0.00%
50.17% *
0.0%
Ragnhild Janbu Fresvik was considered dependent of Grieg Seafood ASA until 31 March 2023 as she was employed by Grieg Maturitas
AS, the largest shareholder of Grieg Seafood ASA via Grieg Aqua AS, until this time. Per Grieg and Nicolai Hafeld Grieg represent the
main shareholders in the Group, and as such are defined as not independent. The Board works on the basis that there may be cases
where one or more of its members may be prejudiced. To prevent and mitigate any conflict of interests, any such issues are clarified
before meetings are held. A Board member or members who are prejudiced refrain from participating in the relevant matter. Apart from
1. The Code of Practice recommends that all shareholders should be able to submit proposals to the Nomination Committee for candidates
shareholder’s representation, no other stakeholders are represented in the Board.
to the Board of Directors and other appointments in a simple and easy manner. Currently, shareholders must send an email to the chair
of the Nomination Committee directly. The company will investigate how it can further facilitate the submission of new proposals so that
all shareholders can easily propose candidates to the Board and Nomination Committee.
Board members’ qualifications are wide-ranging, with the relevant competencies relevant to the impacts of the Grieg Seafood. Two of the
members have extensive knowledge within salmon farming, having both served on boards and been employed in the industry for several
years. Five of the members have a finance background, whereof three have experience from banking and financial institutions, and one
from innovation and marketing. One Board member is currently engaged in the development of new business opportunities related to the
energy transition within the maritime segment, where part of this knowledge can be applicable to Grieg Seafood’s business. The average
age of the Board members is 57.
Board members are not included in share option programs as Board members are only elected for one year at a time while the share
option program runs over a longer period.
The company’s website provide information on Board members’ backgrounds, expertise as well as quarterly updated Board members’
shareholdings in the company. No under-represented social groups are included in the Board or any of its committees.
Deviations from the Norwegian Code of Practice: None.
PART 03 - OUR FINANCIAL RESULTS
80
9. THE WORK OF THE BOARD OF DIRECTORS
DUTIES AND ANNUAL PLAN
The Norwegian Public Limited Liability Companies Act regulates the duties and workings of the Board of Directors. In addition, the Board
has adopted supplementary rules of procedure covering the duties of the Board and the Group’s CEO, the division of labor between the
Board and the CEO, the annual plan for the Board, notices of Board proceedings, administrative procedures, minutes, Board committees,
handling of conflicts of interests, transactions between the company and shareholders, and confidentiality.
The Board’s main task is to ensure a proper organization of the company’s business and thereby also safeguard the shareholders'
interests. The Board has partly delegated the management and takes up a supervisory role for delegated tasks, overseeing the conduct
and management of Grieg Seafood. The Board’s responsibilities to ensure good corporate governance include approving the vision,
core values, strategies, objectives, plan and budgets. It also includes approving the overall organization of the operations, including an
efficient and value-creating management structure. The Board also monitors the Group’s operational performance and financial position,
and its impacts on the economy, environment and people, as well as related risks, and verifies compliance. The Board shall initiate any
investigation it considers necessary to perform its duties, or investigations requested by one or more Board members.
To ensure all matters are given unbiased and satisfactory consideration, members of the Board and executive management cannot
consider matters in which they have a special and prominent interest. The Board jointly assess each board member’s impartiality with
respect to matters under consideration.
INSTRUCTIONS
The Board has drawn up a set of instructions for its members and executive management, which contain a more detailed description
of the Board’s duties, procedural matters relating to meetings of the Board, including attendance and schedule, separate entries in the
board minutes, and duty of confidentiality.
The Board and the CEO have separate roles, and there is a clear division of responsibility between the two. The Board of directors has
delegated the management of the Group’s overall operation and resources to the CEO. The Board underlines that special care must be
exercised in matters relating to financial reporting and the remuneration of the executive management team.
The instructions for the Board and executive management were last revised by the Board on 20 September 2017.
CONFLICT OF INTEREST
Board members and the Group’s executive management team shall inform the Board if they have any significant interest in a transaction
to which the company is a party. To prevent and mitigate any conflict of interests, any such issues are clarified before Board meetings
are held. A Board member or members who are not independent must refrain from participating in the relevant matter. Any conflicts
of interest must be registered by the administration and disclosed in the Annual Report. Please refer to Note 30 to the Group Accounts
in the Annual Report 2023 for an overview of related parties transactions in 2023. The Group has adopted a policy that sets out Grieg
Seafood’s principles for interaction with the Group’s majority shareholder, with the aim of ensuring equal treatment of all shareholders.
In matters of importance where the Board’s chair is or has been actively involved, the Board’s discussions shall be chaired by the vice
chair.
ANNUAL ASSESSMENT
Each year, the Board shall carry out an assessment of its work, including its performance in overseeing the conduct and management of
the company in the previous year. The assessment is based on the results of a questionnaire completed anonymously by each member of
the Board and the executive management team. The latest assessment, completed in the autumn of 2023, did not uncover any need for
changes to the composition of the Board or organizational practices.
AUDIT COMMITTEE
The Board has set up a sub-committee, Audit Committee, comprising a minimum of two and a maximum of three members with relevant
financial and operational background and experience, elected from among the Board’s members, and has drawn up a mandate for its
work. The mandate was last updated in 2023.
The Audit Committee has a particular responsibility for overseeing the integrated financial and sustainability reporting process, the audit
process, the company’s system of risk management, internal controls and compliance with laws and regulations. The Audit
Committee reviews the Group’s quarterly and annual reports before they are put to the full Board for final approval. In 2023, the Audit
Committee held seven meetings, in accordance with its annual plan. The Audit Committee also carries out an annual assessment of is
work, including its performance in overseeing the conduct, impact and management of all risk areas, as well as its own composition. The
Group’s external auditor participates in all Audit Committee meetings.
As at 31 December 2023, the Audit Committee consisted of one woman and one man:
Board’s Audit Committee
Katrine Trovik
Tore Holand
Role
Chair
Member
Considered independent
Served since
2023 meting attendance
Yes
Yes
14.05.2020
13.06.2019
100%
88%
REMUNERATION COMMITTEE
The Remuneration Committee is governed by a separate set of instructions adopted by the Board of Directors. The members of the
Remuneration Committee are appointed by and from among the members of the Board and shall be independent of the company's
executive management. As at 31 December 2023, the Remuneration Committee consisted of one woman and one man:
Board's Remuneration Committee
Per Grieg
Marianne Ødegaard Ribe
Role
Chair
Member
Considered independent
No
Yes
Served since
13.06.2009
14.05.2020
The role of the Remuneration Committee is to have an appropriate reward policy that attracts and motivates executives to achieve the
long-term interests of shareholders. The Remuneration Committee assists and facilitates the Board’s decision-making in matters
related to the remuneration of the executive management team. It also reviews recruitment policies, career planning and management
development plans, and prepares matters relating to other material employment issues with respect to executive management. The
Remuneration Committee monitors that remuneration is in line with guidelines approved by the AGM, and prepares a remuneration
report which must be audited by the company’s auditor. The AGM shall conduct a consulting vote over the remuneration report.
The Remuneration Committee shall hold discussions with the CEO concerning his/her financial terms of employment. It shall further
submit a recommendation to the Board concerning all matters relating to the CEO’s financial terms of employment.
The Remuneration Committee is also the advisory body for the CEO in relation to remuneration schemes which cover all employees to a
significant extent, including the Group’s bonus system and pension scheme. Matters of an unusual nature relating to personnel policy, or
matters considered to entail an especially great or additional risk, should be put before the committee.
The Remuneration Committee reports and makes recommendations to the Board, but the Board retains responsibility for implementing
such recommendations.
The composition of the Remuneration Committee is assessed each year.
Deviations from the Norwegian Code of Practice: None.
RISK MANAGEMENT AND INTERNAL CONTROL
Governance is intended to provide a means by which management and other employees can contribute to the achievement of the
company’s objectives, plan for sound internal control and risk management, support efficient and effective operations with the required
level of monitoring and reporting, as well as establish effective independent control and assurance. Risk management is part of
governance and involves identifying the types of risk exposure the company faces, measuring these potential risks, proposing means to
hedge, insure or mitigate the risks, and estimating the impact of various risks and opportunities on the future earnings. Internal control
represents a subset of the broader risk management activities.
Internal control comprises activities and procedures carried out to safeguard the Group’s resources and those of its customers, and to
realize its goals through appropriate operations. The achievement of these goals requires systematic strategy development and planning,
identification of risk, choice of risk profile, as well as establishing and implementing control measures to verify that the goals are
achieved. The Group’s internal control system is designed to provide reasonable assurance that the Group’s goals will be achieved. Such
goals include targeted, efficient, and appropriate operations, reliable internal and external reporting, as well as compliance with laws and
regulations, including internal policies and principles.
PART 03 - OUR FINANCIAL RESULTS
81
The Board has a responsibility to ensure that the Group has proper risk management and such internal control as is required by
statute. The Audit Committee has been given a particular responsibility to monitor critical business risks and address the quality and
effectiveness of relevant risk-reducing measures. Management performs a risk assessment quarterly, which is reviewed by the Audit
Committee in connection with quarterly reporting. The Audit Committee informs the Board after each meeting.
Each year, the external auditor carries out a review of the Group’s performance of internal control relevant for financial reporting. The
auditor’s review is submitted to the Audit Committee.
Grieg Seafood has established risk management principles based on the COSO Enterprise Risk Management (COSO ERM) framework,
which is the most widely used risk management framework. Based on this, a described and quantified risk appetite and risk tolerance
level has been established. Risk management processes are established at all relevant levels of the Group, including strategic and
operational levels. Day-to-day implementation of risk management and risk assessment are a line management responsibility, with
ultimate responsibility lying with the Board and executive management. Risks are attributed to risk owners according to the functional
matrix of the organization. Risk owners decide, manage and accept risk exposure and identify and ensure implementation of adequate
controls to close any risk gaps. The company follows the “three lines model” to implement roles responsible for risk management,
internal control and assurance activities.
The Group categorizes its main risks as: strategic risk, operational risk, financial risk, compliance risk, political risk and climate and
nature risk. Management conducts continuous assessments of acute risks and scenarios for possible outcomes. The Group’s greatest
risk relates to biological development during the production of smolt in freshwater facilities and production in open net pens in seawater.
The Group works continuously and systematically to develop processes that safeguard animal welfare and reduce disease and mortality,
and ensure that “best practices” are implemented at all levels. Control routines have been prepared for employee working conditions, as
well as for escape prevention, animal welfare, pollution, water resources and food safety.
The Group is exposed to the following financial risks: market risk (including foreign exchange risk, interest rate risk, and price risk),
credit risk and liquidity risk. The Group’s overall risk management plan focuses on the unpredictability of the capital markets and seeks
to minimize any potentially negative effects on the Group’s financial results. The Group uses financial derivatives to hedge against some
risks. Risk management is undertaken at group level and involves identifying, evaluating and hedging financial risk in close cooperation
with the Group’s operational units. The Group has written principles for risk management related to foreign exchange and interest rate
risk, price risk and the use of financial instruments. The Board has established procedures for reporting financial risk within the Group.
At the start of each year, the Board adopts a budget for the year. Deviations from the budget are reported on a monthly basis. Forecasts
are drawn up for the next five years and updated every month.
Every month, executive management reviews a set of Key Performance Indicators (KPIs) for the Group’s farming and sales and marketing
operations. Example of KPIs include the number of smolt transferred to the sea, freshwater and seawater production, production cost,
feed factor, harvested volume, farming cost and Operational EBIT/kg. Analyses are made and measured against budget figures and
forecasts, aligned with the overall strategy of the Group. The performance data is summarized in a report submitted to the Board.
Each quarter, the Group’s executive management holds meetings with the management of each region. The aim of such meetings is to
follow up the results achieved in relation to the strategies and goals that have been set.
Deviations from the Norwegian Code of Practice: None.
11. REMUNERATION OF THE BOARD OF DIRECTORS
Proposals concerning the remuneration of the Board are submitted by the Nomination Committee. The guidelines approved by the AGM
12. REMUNERATION OF THE GROUP EXECUTIVE TEAM
The objective of the guidelines approved by the AGM for salary and other remuneration payable to executive employees within the Group
is both to attract people with the required competence and retain key personnel. The guidelines shall create a wage culture which
promotes the company’s long-term interests, business strategy and financial strength. The guidelines should also motivate employees to
work with a long-term perspective to achieve the company’s goals.
The determination of salary and other remuneration payable to the Group’s executive management team is based on the following
guidelines:
• Ensuring that salaries and other remuneration are competitive and motivating for each executive.
• Linking salaries and other remuneration to, among other things, the company’s value creation, the company’s stakeholders and
shareholders.
• Attracting, motivating and retaining an executive management team with qualifications that correspond to the company’s size and
complexity.
• Developing competence and creating continuity in management.
• Ensuring transparency and publishing management’s remuneration in the company.
The principles used to determine salary and other forms of remuneration shall be simple and understandable to employees,
shareholders and the public at large.
Salaries, other remuneration and important terms for the executive management team are evaluated by the CEO annually. Salary, other
remuneration and key terms for the CEO are evaluated annually by the Remuneration Committee, which prepares a recommendation
for the Board’s decision on remuneration to the CEO. The committee shall hold discussions with the CEO about financial terms annually
and, at the latest, by the end of June each year. The Remuneration Committee presents its evaluation to the Board, which makes the final
decision.
The salary agreed to the members of the Group’s executive management team in 2023 consisted of a fixed and a variable element. A fixed
basic salary is the main component of executive compensation and should be competitive, taking into consideration the industry and the
individual’s qualifications, and ensuring effective operations to achieve the company’s strategic aims. The variable element depends on
good financial results being achieved as well as company or personal goals and priorities, based on a pre-defined set of key performance
indicators (KPIs). No variable element was paid to the Group's executive management in 2023 (cf. below incentive plan).
General schemes for the allocation of variable benefits, including bonus schemes and option programs, are determined by the Board
according to the guidelines approved of the AGM. Schemes which entail an allotment of shares, subscription rights, options and
other forms of remuneration related to shares or the development of the company’s share price, are determined by the AGM. Each
year, the Board must report to AGM that remuneration to executive personnel complies with the guidelines. The Board’s statement
on management remuneration is a separate item on the AGM’s agenda. The AGM votes separately on guidelines to the Board and on
remuneration comprising the synthetic options program. The guidelines and the remuneration report will be published on the company’s
website.
The company’s Board approved the allocation of cash options based on the AGM’s resolution on the share and cash options program.
The last approval granted by the AGM dates from 2 June 2021. Members of executive management are included in the synthetic options
program, see Note 8 to the Group Accounts in the Annual Report 2023. The option agreements have been entered into within the scope of
the resolution adopted by the AGM. Minutes of this AGM can be accessed here.
OPTION PROGRAM
A synthetic option scheme has been established for group management including regional directors. The Board wishes group
state that remuneration to members of the Board shall be a fixed remuneration and not performance-related. Remuneration shall reflect
management to become shareholders through the option program. The Board believes this is a decisive tool for realizing its ambitions
the position’s complexity, responsibility and time spent, with remuneration reflecting the levels at comparable companies. No Board
member has any special duties in relation to the company over and above those they have as a member. No Board member participates in
any incentive or share-purchase programs.
Board remuneration is shown in the financial statements of both the parent company and the Group.
Deviations from the Norwegian Code of Practice: None.
PART 03 - OUR FINANCIAL RESULTS
and building the company, by allowing group management to take part in the company’s dividends from growth and success.
82
INCENTIVE PLAN
Grieg Seafood ASA has also established an incentive plan that applies to all employees. Its aim is to stimulate goal achievement, while
SHAREHOLDER INFORMATION
The Board shall ensure that information is provided on matters of importance for shareholders and for the stock market’s assessment
promoting good risk management, preventing excessive risk taking and contributing to the avoidance of conflicts of interest. Annual
of the company, its activities and results, and that such information is made publicly available without undue delay. Publication shall take
goal achievement and pay-outs from the incentive plan are regulated by the Remuneration Committee. Taking into consideration the
place in a reliable and comprehensive manner, and by means of information channels which ensure that everyone has equal access to the
company’s financial position, risks and costs, as well as its capital requirements and liquidity, the committee will decide if the payment
information.
of variable compensation under the incentive plan is acceptable. If so, the committee will submit a recommendation to the Board, which
makes the final decision. If the company cannot achieve the financial results associated with the incentive plan, no bonus pay-out will
All information shall be provided in English. The company has procedures to ensure that this is done. The Board of Directors’
be awarded. The bonus is a function of the number of fixed monthly salaries (maximum six month) and the individual’s level within the
communication with shareholders and other stakeholders is delegated to the Board’s chair, or other appointed persons in specific cases.
organization.
The Board’s chair shall ensure that the shareholders’ views are communicated to the entire Board.
General schemes for the allocation of variable benefits, including bonus schemes and option programs, are determined by the Board
Deviations from the Norwegian Code of Practice: None.
according to the guidelines approved of the AGM. Schemes which entail an allotment of shares, subscription rights, options and
other forms of remuneration related to shares or the development of the company’s share price, are determined by the AGM. Each
year, the Board must report to AGM that remuneration to executive personnel complies with the guidelines. The Board’s statement
on management remuneration is a separate item on the AGM’s agenda. The AGM votes separately on guidelines to the Board and on
remuneration comprising the synthetic options program. The guidelines and the remuneration report will be published on the company’s
website.
SHARE PURCHASE PROGRAM
The company’s share purchase program aims to stimulate co-ownership and a sense of common interest with the company. The Board
can decide annually that all employees, including executive management, shall be offered shares at a discount. All permanent employees
who have been employed for at least six months at Grieg Seafood ASA or a wholly owned subsidiary are included in this program. Minor
changes in qualifications to this program may be approved by the Remuneration Committee and/or the CEO.
SEVERANCE PAY
The CEO and the CFO are entitled to 12 months’ severance pay after termination of the employment relationship by the company. The
CEO is further entitled to full salary during sick leave lasting up to 12 months.
Deviations from the Norwegian Code of Practice: None.
13. INFORMATION AND COMMUNICATION
14. TAKEOVERS
CHANGE OF CONTROL AND TAKEOVERS
The company has not established mechanisms which can prevent or avert takeover bids. Any such decision must be made by a General
Meeting of shareholders and requires a majority of two-thirds of the votes cast and of the share capital represented. After a takeover
bid has become known, the Board will not use its authority to prevent it without the approval of the General Meeting. If a takeover bid
is received, management and the Board will ensure that all shareholders are treated equally. The Board will obtain a valuation from
a competent independent party and advise the shareholders whether to accept or reject the bid. Shareholders will be advised of any
difference of views among members of the Board in its statements on the takeover bid.
At its meeting on 13 October 2015, the Board adopted some core principles for how it will act in the event of any takeover bid. These core
principles are in accordance with the Norwegian Code of Practice.
Deviations from the Norwegian Code of Practice: None.
15. AUDITOR
FINANCIAL INFORMATION
The guidelines for reporting financial and other information to the stock market are defined within the framework established by
securities and accounting legislation and the rules and regulations of the stock exchange. The company also complies with the Oslo Stock
Through its Audit Committee, the Board seeks to collaborate fully and transparently with the Company’s auditor. Each year, the Audit
Committee obtains confirmation that the auditor meets the requirements of the Norwegian Auditing Act concerning the independence
and objectivity of the external auditor.
Exchange (Euronext) Code of Practice for IR, published on 1 March 2021.
The Board of Directors ensures that the auditor’s auditing plan is submitted to the Audit Committee once a year. In particular, the Audit
The Group’s investor relations policy clarifies roles and responsibilities related to financial reporting, and regulates contact with
shareholders and the investor market. This policy is based upon the key principles of transparency and equal treatment of market
Both the company’s management and the auditor comply with guidelines issued by the Financial Supervisory Authority of Norway
participants to ensure they receive accurate, clear, relevant, complete and balanced information about performance and outlook. The
concerning the extent to which the auditor may provide advisory services.
IR policy is available on the company’s website. The company shall at all times provide its shareholders, the Oslo Stock Exchange
(Euronext), and other stakeholders (through the Oslo Stock Exchange information system) with timely information. The Board shall
The Board invites the auditor to the meeting which address the annual financial statements. The auditor attends all meetings with the
ensure that the company’s quarterly reports give a correct and complete picture of the Group’s financial and operational position, and
Audit Committee to consider quarterly reports and other relevant matters, and has at least one meeting a year to report on the Group’s
whether the Group’s operational and strategic objectives are being met. In addition, the Board has adopted a separate policy on the
accounting principles, risk areas and internal control procedures. Moreover, each year, the Board has a meeting with the auditor at which
disclosure of inside information, which sets forth the company’s disclosure obligations and procedures.
neither the CEO nor anyone else from company management is present.
Committee considers whether the auditor is performing a satisfactory control function.
The company shall be open and active with respect to investor relations, and shall hold regular presentations in connection with
The auditor’s fee appears in the relevant note in the Annual Report, showing the breakdown of the fee between auditing and other
the announcement of its interim results. The company publishes all information (including quarterly reports and annual reports in
accordance with the company’s financial calendar) through stock exchange/press releases, all of which are also published on the
company’s website. The presentation of each quarter’s results is available as webcast.
services.
Deviations from the Norwegian Code of Practice: None.
Bergen, 21 March 2024
Grieg Seafood ASA
PART 03 - OUR FINANCIAL RESULTS
83
GRIEG SEAFOOD
GROUP ACCOUNTS
GROUP ACCOUNTS
85
Income statement
85
86
87
87
Comprehensive income statement
Statement of financial position
Statement of changes in equity
Cash flow statement
NOTES
88
89
90
91
94
95
95
96
98
99
99
100
102
105
106
107
108
108
109
112
113
113
113
113
115
115
116
118
119
120
120
122
NOTE 1
General information
NOTE 2
Accounting Policies
NOTE 3
Nature and climate-related risk
NOTE 4
Financial risk management
NOTE 5
Segment information
NOTE 6
Sales revenues
NOTE 7
Salaries and personnel expenses
NOTE 8
Share-based payments
NOTE 9
Other operating expenses
NOTE 10
Contingent liabilities, litigation and legal claims and decommissioning costs
NOTE 11
Financial income and financial expenses
NOTE 12
Income taxes
NOTE 13
Intangible assets
NOTE 14
Property, plant and equipment incl. right-of-use assets
NOTE 15
Impairment of non-financial assets
NOTE 16
Investment in associated companies and joint ventures
NOTE 17
Other non-current receivables
NOTE 18
Inventories
NOTE 19
Biological assets
NOTE 20
Trade receivables
NOTE 21
Other current receivables
NOTE 22
Investment in money-market funds
NOTE 23
Cash and cash equivalents
NOTE 24
Share capital and shareholder information
NOTE 25
Contingent consideration, other equity and retained earnings
NOTE 26
Earnings per share and dividend per share
NOTE 27
Borrowings
NOTE 28
Leases
NOTE 29
Other current liabilities
NOTE 30
Related parties
NOTE 31
Financial instruments and fair value measurement
NOTE 32
Events after the reporting date
PART 03 - OUR FINANCIAL RESULTS
84
INCOME STATEMENT
COMPREHENSIVE INCOME STATEMENT
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
2023
2022
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
5/6
7 019 632
7 163 956
Net profit for the year
38 497
-6 959
-6 957
31 490
13 393
21 096
-2 747 944
-2 233 655
-725 653
-695 577
16
19
7/8
9/20/28
-2 236 165
-2 087 310
NET OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT/LOSS IN SUBSEQUENT YEARS
Currency effect on investment in subsidiaries
Currency effect on loans to subsidiaries
Tax effect
Total other comprehensive income for the year, net of tax
25
25
2023
559 750
98 316
28 784
-6 332
120 767
2022
1 153 779
109 335
24 792
-5 454
128 673
Total comprehensive income for the year
680 517
1 282 452
ALLOCATED TO
Controlling interests
680 517
1 282 452
Sales revenues
Other income
Other gains/losses
Share of profit from associates
Raw materials and consumables used
Salaries and personnel expenses
Other operating expenses
Depreciation property, plant and equipment and right-of-use assets
Amortization licenses and other intangible assets
Write-down of tangible and intangible non-current asset
14/28
13
13/14/15
Production fee
Fair value adjustment of biological assets
Litigation and legal claims
Decommissioning costs
EBIT (Earnings before interest and taxes)
Financial income
Financial expenses
Net financial items
Profit before tax
Income tax expense
Net profit for the year
ALLOCATED TO
Owners of the parent company, Grieg Seafood ASA
Earnings per share
Earnings per share (NOK)
Diluted earnings per share (NOK)
19
10
10
11
11
12
26
26
-532 911
-21 792
136
-34 987
217 922
20 427
-2 515
-434 641
-16 706
-140 074
-26 350
83 412
-157 065
-24 382
980 730
1 497 586
140 195
-276 768
-136 573
126 267
-176 210
-49 944
844 157
1 447 642
-284 407
559 750
-293 863
1 153 779
559 750
1 153 779
5.0
5.0
10.3
10.3
PART 03 - OUR FINANCIAL RESULTS
85
STATEMENT OF FINANCIAL POSITION
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2023
31.12.2022
GRIEG SEAFOOD GROUP NOK 1 000
NOTE
31.12.2023
31.12.2022
ASSETS
Goodwill
Licenses
Other intangible assets
13/15
13/15
13
727 111
691 094
1 489 798
1 463 710
EQUITY AND LIABILITIES
Share capital
Treasury shares
13 275
14 689
Contingent consideration
Property, plant and equipment incl. right-of-use assets
14/15/28
5 095 401
4 035 590
Indemnification assets
Investments in associates
Other non-current receivables
Total non-current assets
Inventories
Biological assets
Trade receivables
Other current receivables
Derivatives and other financial instruments
Investments in money market funds
Cash and cash equivalents
Total current assets
Total assets
16
17/31
18
19
4/20/31
21/31
4/31
22/31
40 000
209 667
42 337
40 000
216 624
17 935
7 617 589
6 479 642
230 053
240 172
5 065 718
4 045 800
327 160
171 249
35 164
259 137
157 060
37 988
—
1 012 848
4/23/31
216 318
642 719
6 045 663
6 395 723
13 663 252
12 875 365
Other equity
Retained earnings
Total equity
Deferred tax liabilities
Share-based payments
Borrowings
Lease liabilities
Total non-current liabilities
Share-based payments
Current portion of borrowings
Current portion of lease liabilities
Trade payables
Tax payable
Public duties payable
Derivatives and other financial instruments
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
BERGEN, 21 MARCH 2024
The Board of Directors and CEO of Grieg Seafood ASA
24
24
25
25
25
12
8/31
27/31
27/28/31
8/31
27/31
27/28/31
4/31
12
4/31
29/31
453 788
-5 255
701 535
317 947
5 201 155
6 669 170
842 612
8 178
3 491 980
1 111 049
5 453 819
833
208 335
299 626
760 753
6 156
27 266
1 709
235 584
453 788
-5 407
701 535
197 180
5 138 612
6 485 708
1 041 101
6 756
2 838 809
653 650
4 540 316
672
141 968
226 910
717 498
353 191
55 963
64 928
288 210
1 540 263
1 849 341
6 994 082
6 389 657
13 663 252
12 875 365
PART 03 - OUR FINANCIAL RESULTS
86
PER GRIEG
Chair
TORE HOLAND
Vice Chair
KATRINE TROVIK
Board Member
RAGNHILD JANBU FRESVIK
Board Member
MARIANNE RIBE
Board Member
NICOLAI HAFELD GRIEG
ANDREAS KVAME
Board Member
CEO
STATEMENT OF CHANGES IN EQUITY
GRIEG SEAFOOD GROUP NOK 1 000
Equity at 01.01.2022
Profit for 2022
Other comprehensive income 2022
Total comprehensive income 2022
Sale of treasury shares to employees1
Purchase of treasury shares
Dividend
Transactions with owners [in their capacity as owners]
2022
Total change in equity 2022
Equity at 31.12.2022
Equity at 01.01.2023
Profit for 2023
Other comprehensive income 2023
Total comprehensive income 2023
Sale of treasury shares to employees1
Purchase of treasury shares
Dividend
Transactions with owners [in their capacity as owners]
2023
Total change in equity 2023
Equity at 31.12.2023
SHARE
CAPITAL
TREASURY
SHARES1
CONTINGENT
CONS.2
OTHER
EQUITY2
RETAINED
EQUITY2
TOTAL
453 788
-4 532
701 535
68 205
4 344 307
5 563 302
—
—
—
—
—
—
—
—
—
—
—
385
-1 260
—
-875
-875
—
—
—
—
—
—
—
—
—
1 153 779
1 153 779
128 976
-303
128 673
128 976
1 153 476
1 282 452
—
—
—
—
6 510
6 895
-28 739
-29 999
-336 942
-336 942
-359 171
-360 046
CASH FLOW STATEMENT
GRIEG SEAFOOD GROUP NOK 1000
EBIT (Earnings before interest and taxes)
Depreciation, amortization and write-down of non-current assets
Gain/loss on sale of property, plant and equipment
Share of profit from associates
Fair value adjustment of biological assets
Change in inventories and biological assets excl. fair value
Change in trade and other receivables
Change in trade payables
Change in other accruals
128 976
794 305
922 406
Change in non-current, cash-settled share option liability
453 788
-5 407
701 535
197 180
5 138 612
6 485 708
Taxes paid
453 788
-5 407
701 535
197 180
5 138 612
6 485 708
—
—
—
—
—
—
—
—
—
—
—
433
-280
—
153
153
—
—
—
—
—
—
—
—
—
559 750
559 750
120 767
—
120 767
120 767
559 750
680 517
—
—
—
—
6 632
280
7 065
—
-504 120
-504 120
-497 208
-497 055
120 767
62 543
183 463
Net cash flow from operating activities
Proceeds from sale of property, plant and equipment
Payments on purchase of property, plant and equipment
Payments on purchase of intangible assets incl. licenses
Government grant
Investment in money market funds
Investment in associates and other invest. incl. loan receivables
Net cash flow from investing activities
Proceeds of long-term int. bearing debt
Proceeds of short-term int. bearing debt
453 788
-5 255
701 535
317 947
5 201 155
6 669 170
Repayment long-term int. bearing debt excl. lease liabilities
1 The recognized amount equals the nominal value of the parent company's holding of treasury shares.
2 See Note 25.
Repayment lease liabilities
Interests paid
Repurchase of own shares
Paid dividends
Net cash flow from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents - 01.01.
Currency translation of cash and cash equivalents
Cash and cash equivalents - 31.12.
NOTE
13/14
16
19
8
12
14
13
14
22
16/17
27
27
27
27/28
11
25
25
23
2023
980 730
554 568
8 159
6 957
-217 922
-829 630
-82 213
43 256
93 357
1 422
-860 705
-302 021
2 408
-790 032
-1 592
25 847
2022
1 497 586
591 422
-5 535
-21 096
-83 412
-529 150
-117 071
194 302
155 412
-4 359
-93 865
1 584 234
17 112
-561 916
-2 581
9 119
1 041 914
-1 000 224
-22 821
255 724
754 379
63 113
-193 517
-279 830
-221 759
-5 540
-504 120
-387 274
-112 212
-1 650 702
1 463 423
—
-962 146
-225 468
-140 002
-24 400
-336 942
-225 535
-433 571
-292 003
642 719
7 170
216 318
928 342
6 380
642 719
PART 03 - OUR FINANCIAL RESULTS
87
NOTE 1 GENERAL INFORMATION
G R O U P L E G A L S T R U C T U R E
AUTHORIZATION OF THE CONSOLIDATED
FINANCIAL STATEMENTS
The consolidated financial statements of Grieg Seafood for the
full year ended 31 December 2023 were approved for issuance by
COMPANIES OF THE GROUP
Grieg Seafood Group comprised the following entities at
31 December 2023:
the Board of Directors on 21 March 2024 and subject to approval
Grieg Seafood UK Ltd (owned 100% by Grieg Seafood Sales AS) is
by the Annual General Meeting of Grieg Seafood ASA.
domiciled in the UK. Grieg Seafood BC Ltd., and its 100% owned
ORGANIZATION
The Grieg Seafood Group (Grieg Seafood) consist of the parent
subsidiary Grieg Seafood Sales North America Inc, are domiciled
in British Columbia, Canada, while Grieg Seafood Newfoundland
Ltd (incl. the subsidiaries Grieg Marine NL Ltd and Grieg NL
company Grieg Seafood ASA and its subsidiaries. Grieg Seafood
Nurseries Ltd) are domiciled in Newfoundland, Canada. Grieg
ASA is incorporated and domiciled in Norway. Grieg Seafood
Seafood Premium Brands Inc (domiciled in the USA) is owned
ASA is a public limited company registered in Norway, and is
100% by Grieg Seafood Sales North America Inc. Grieg Seafood
listed on the Oslo Stock Exchange in Norway. The address for its
Sales USA Inc (domiciled in the USA) is owned 100% by Grieg
registered office is C. Sundts Gate 17/19, 5008 Bergen, Norway.
Seafood Sales AS.
Grieg Seafood is an integrated Norwegian seafood company
To be able to correctly calculate and report the resource rent tax
engaged in farming of Atlantic salmon. The consolidated Grieg
in Norway as from 2023, Grieg Seafood considered it necessary
Seafood’s (“The Group”) integrated sales organization sell the
in 2022 to reorganize the ownership of aquaculture licenses
farmed salmon from our regions to the market, primarily as
in Norway into separate legal entities owning the commercial
fresh head-on gutted, but also processed through external
and non-commercial aquaculture licenses. Therefore, Grieg
processing partners. The Group has operations in Norway and
Seafood Rogaland Sjø AS was established as a subsidiary (100%)
Canada.
of Grieg Seafood Rogaland AS, and Grieg Seafood Finnmark Sjø
AS as a subsidiary (100%) of Grieg Seafood Finnmark AS. The
GRIEG
SEAFOOD
ASA
OWNER
SHARE: 99%
GRIEG SEAFOOD
SALES AS
GRIEG SEAFOOD
UK LTD
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD
ROGALAND AS
GRIEG SEAFOOD
FINNMARK AS
GRIEG SEAFOOD
CANADA AS
GRIEG SEAFOOD
NEWFOUNDLAND AS
GRIEG SEAFOOD
ROGALAND SJØ AS
GRIEG SEAFOOD
FINNMARK SJØ AS
GRIEG SEAFOOD BC
LTD
GRIEG SEAFOOD
NEWFOUNDLAND LTD
TYTLANDSVIK
AQUA AS (33.33%)
NORDNORSK
SMOLT AS (50%)
ÅRDAL AQUA
AS (44.44%)
NEXTSEAFOOD
AS (50%)
GRIEG SEAFOOD
SALES NORTH
AMERICA INC
GRIEG SEAFOOD
PREMIUM BRANDS
INC.
GRIEG MARINE
NL LTD
GRIEG NL
NURSERIES LTD
The ultimate parent company of Grieg Seafood ASA is Grieg
commercial aquaculture licenses in Norway are owned by Grieg
Maturitas AS, the parent company of Grieg Maturitas II AS, which
Seafood Rogaland Sjø AS and Grieg Seafood Finnmark Sjø AS.
S E G M E N T S T R U C T U R E
in turn owns 100 % of Grieg Aqua AS, which owns 50.17% of Grieg
These four entities are all domiciled in Norway. See Note 12 for
Seafood ASA.
more information concerning the internal reorganization of the
Rogaland and Finnmark farming regions in 2022.
The remaining subsidiaries are domiciled in Norway and owned
by Grieg Seafood ASA.
Grieg Seafood Canada AS (100%) and Grieg Seafood
Newfoundland AS (99%) are holding companies within the Group,
and wholly own the production companies Grieg Seafood BC Ltd.
(incl. subsidiaries) and Grieg Seafood Newfoundland Ltd (incl.
subsidiaries), respectively.
Grieg Seafood Rogaland AS has investments in three associated
companies; Tytlandsvik Aqua AS (33%), Årdal Aqua (44%) and
Nextseafood AS (50%), while Grieg Seafood Finnmark has an
investment (50%) in Nordnorsk Smolt AS.
GRIEG
SEAFOOD
ASA
NOR
NOR
CAN
CAN
ROGALAND
FINNMARK
BRITISH COLUMBIA
NEWFOUNDLAND
GRIEG SEAFOOD
ROGALAND AS
GRIEG SEAFOOD
ROGALAND SJØ AS
GRIEG SEAFOOD
SALES AS
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD
FINNMARK AS
GRIEG SEAFOOD
FINNMARK SJØ AS
GRIEG SEAFOOD
SALES AS
GRIEG SEAFOOD
SALES USA INC.
GRIEG SEAFOOD SALES
NORTH AMERICA INC.
GRIEG SEAFOOD SALES
NORTH AMERICA INC.
GRIEG SEAFOOD
BC LTD
GRIEG SEAFOOD
NEWFOUNDLAND LTD
GRIEG SEAFOOD SALES
NORTH AMERICA INC
GRIEG SEAFOOD SALES
NORTH AMERICA INC
PART 03 - OUR FINANCIAL RESULTS
88
NOTE 2 ACCOUNTING POLICIES
NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS - NOT YET
ADOPTED
At the end of 2023, there are some amendments to, and
interpretations of, existing IFRS standards that are not yet
the change in the underlying estimate and include within the
relevant financial statement line item relevant for the item that is
estimated.
The material accounting policies applied by Grieg Seafood when
The material accounting policies described in these consolidated
effective. The Group has not early adopted any amendments
Non-monetary assets measured at historical cost in a foreign
preparing the consolidated financial statement are set out below
financial statements have been applied consistently to all periods
or interpretations of such standards. The Group’s intention
currency are translated using the currency exchange rate at the
and in the following note disclosures. These note disclosures of
presented, except as otherwise noted in in the disclosure related
is to adopt the relevant new and amended standards and
date of the transaction.
the consolidated financial statement have been structured such
to the impact of new standards, amendments and interpretations
interpretations when they become effective, subject to EU
that the material accounting policies relevant for the various note
adopted by the Group.
disclosures have been presented together, and not separated
approval before the consolidated financial statements are issued.
There are no amendments, or interpretations, of standards not
CONSOLIDATED FINANCIAL STATEMENT
The consolidated financial statements are presented in
by a dedicated accounting policy note. For those material note
All amounts in these consolidated financial statements are stated
yet adopted that are expected to have a material impact on the
Norwegian Kroner (NOK), which is the parent company’s
disclosures then encompass accounting policies not specific for
in NOK thousand unless otherwise specified.
consolidated financial statements of Grieg Seafood.
functional currency and the Group’s presentation currency.
a financial statement line item or otherwise topic of disclosure,
the relevant material accounting policies have been set forth in
Certain amounts in the comparable years can be reclassified to
this Note 2.
STATEMENT OF COMPLIANCE
The consolidated financial statements as per 31 December 2023
conform to current year presentation. If such reclassification is
not clearly immaterial, the reclassification is disclosed in the
relevant note disclosure for the financial statement line item.
CONSOLIDATION PRINCIPLES
The consolidated financial statements include all entities
controlled by Grieg Seafood ASA.
When preparing the consolidated financial statements, the
income statements and statements of financial positions
of the Group entities (none of which has the currency of a
hyperinflationary economy) that have a functional currency
Subsidiaries are all entities over which the Group exercises
different from the presentation currency are translated into the
for the period 1 January to 31 December have been prepared
Operational expenses in the consolidated income statement are
control. Control over an entity arises when the Group is exposed
presentation currency as follows:
in accordance with IFRS® Accounting Standards as adopted by
presented based on nature of expense.
to variability in the return from the entity and has the ability
the EU and with IFRSs as issued by the International Accounting
Standards Board (IASB), interpretations issued by IASB and
the additional requirements of the Norwegian Accounting Act,
effective on 31 December 2023.
BASIS OF PREPARATION
The consolidated financial statements have been prepared under
the historical cost convention, modified for biological assets,
equity instruments and financial assets/liabilities (including
derivative instruments) at fair value through profit or loss.
NEW STANDARDS, AMENDMENTS AND
INTERPRETATIONS ADOPTED BY THE GROUP
NEW AND AMENDED STANDARDS, AND INTERPRETATIONS - ADOPTED
IN 2023
AMENDMENTS TO IAS 1 AND IFRS PRACTICE
STATEMENT 2 - DISCLOSURE OF ACCOUNTING POLICIES
The IASB amended IAS 1 to require entities to disclose their
material rather than their significant accounting policies. The
The preparation of financial statements in accordance with IFRS
amendments
requires the use of estimates. It also requires management to
define what is “material accounting policy information” and
exercise its judgement in the process of applying the company’s
explain how to identify when accounting policy information
to impact this return by virtue of its influence over the entity.
• The statement of financial position is translated using the
Subsidiaries are consolidated from the day control arises and
closing rate at the end of the period.
deconsolidated when control ceases.
• Income and expense items are translated at average
exchange rates for the period (if the average is not a
The acquisition method of accounting is applied for acquisitions.
reasonable estimate of the cumulative effects of using the
There are no non-controlling interests recognized in the Group’s
transaction rate, the transaction rate is used).
equity. All the subsidiaries of Grieg Seafood ASA, except for
• Translation differences are recognized in other
Grieg Seafood Newfoundland AS, are wholly owned, see Note 1
comprehensive income and specified separately.
in general and Note 25 for Grieg Seafood Newfoundland AS in
specific.
FOREIGN CURRENCY TRANSLATION
INDIVIDUAL ENTITIES OF GRIEG SEAFOOD
The financial statements of each of the Group’s entities are
Grieg Seafood ASA has provided loans to subsidiaries of the
Group with other functional currencies than the parent company,
and for which settlement of the loan neither is planned nor likely
to occur in the foreseeable future. In addition, certain parent
companies of sub-consolidation levels of the Group has provided
accounting policies. Estimates and underlying assumptions are
is material. If it is disclosed, it should not obscure material
generally measured using the currency of the economic area in
similar loans to subsidiaries of its sub-group. Foreign currency
continuously evaluated and are based on historical experience
accounting information.The Group has adopted the amendment
which the entity operates (“the functional currency”).
exchange differences arising on such loans are recognized in the
and other factors, including expectations of future events that
in 2023 when preparing the note disclosure for the consolidated
consolidated statement of other comprehensive income in the
are believed to be probable under the present circumstances.
financial statement of 2023.
In preparing the financial statements of the individual entities in
consolidated financial statements of the Group.
The final outcomes may deviate from these estimates. Changes
in accounting estimates are recognized in the period in which the
estimates are changed.
The main areas where Grieg Seafood has made significant
OTHER STANDARDS, AMENDMENTS TO STANDARDS
AND INTERPRETATIONS OF STANDARDS, EFFECTIVE AS
OF 1 JANUARY 2023
The Group has not early adopted any standards, amendments
judgements when applying the accounting policies and that
or interpretations. Other amendments to standards, and
the Grieg Seafood Group, transactions in currencies other than
the functional currency are translated at the foreign currency
exchange rate at the transaction date.
CASH FLOW STATEMENT
The Group’s cash flow statement shows the overall cash flow
specified by operating, investing and financing activities using the
Monetary assets and liabilities denominated in foreign currencies
indirect method. The cash flow statement illustrates the effect
are translated at the functional currency at the foreign currency
of the various activities on cash and cash equivalents. Operating
have the most material effect on the amounts as recognized
interpretations of standards, effective as from 1 January 2023,
exchange rate at the balance sheet date. Foreign currency
activities are presented using the indirect method, where EBIT
in the consolidated financial statements are listed below, with
adopted by the Group in 2023, has not had any material impact on
translation differences are recognized in the consolidated income
(Earnings before interests and taxes) is adjusted for changes in
reference to the relevant note disclosure.
the consolidated financial statements of Grieg Seafood.
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Norwegian resource rent tax scheme (assumptions made concerning the basis for taxation)
Classification of fish-farming licenses (indefinite or definite economic life)
Impairment test of non-financial non-current assets
Fair value measurement of biological assets
NOTE
12
13
15
19
statement as foreign currency exchange gains or losses within
biological assets at cost, other inventories, operating receivables
the subtotal financial statement line item of “Net financial items”.
and liabilities, the effect of non-cash items such as depreciation,
However, there are two exceptions. Firstly, foreign currency
amortization and fair value adjustment of biological assets, profit
translation differences arising from sales revenue to external
customers of the Group, which is included on the financial
statement line item of “other gains and losses”, included in the
subtotal of EBIT (Earnings before interests and taxes) in the
consolidated income statement. Secondly, foreign currency
translation differences arising from the translation of estimate-
based provisions are generally recognized as part of
and loss from investment in associates and joint ventures, and
taxes paid. Increase/decrease in derivative financial instruments
are included as part of the operational activities.
See Note 27 for opening to closing balance reconciliation of the
Group’s gross interest-bearing liabilities, specified by cash and
non-cash items.
PART 03 - OUR FINANCIAL RESULTS
89
NOTE 3 NATURE AND CLIMATE-RELATED RISKS
IMPACT ON FINANCIAL REPORTING AND
ESTIMATES AS AT 31 DECEMBER 2023
As at 31 December 2023, there has been no material impact
CLIMATE-RELATED SCENARIO ANALYSIS
The scenario analysis helps Grieg Seafood to understand the
potential impact of climate change on the Group’s core business
identified on financial reporting judgments and estimates. The
in the future, and is used to stress-test the Group’s strategical
Group recognizes the ever-changing risks related to climate
and financial planning. Grieg Seafood has performed a thorough
change and will regularly assess these risks against judgments
assessment of the impact on the Group’s salmon production
and estimates made in the preparation of the Group’s financial
of 2C and 4C of global warming. Grieg Seafood aims to meet
statements.
the Paris Agreement criteria to keep global warming below
2C, compared to pre-industrial levels. The Group is currently
MANAGING PHYSICAL RISKS AND
OPPORTUNITIES
Assessing the impact of increased seawater temperature
The analysis shows that Grieg Seafood expects increased risks
and costs related to global warming. 4C is a vastly greater
threat than 2C. However, the risks associated with global
warming indicate a shift towards the necessity of alternating
sites, increasing post-smolt production on land and investing
in heavy equipment at those sites which are exposed to harsh
weather. This is in line with the Group’s current strategy, where
large concrete production vessels, and overlay protected work
boats have been introduced to our fleet recent years. Together
The transitioning to equipment that enables the Group to reduce
its fossil fuel consumption, in order to meet the our 2030 Climate
Action Plan target, is an important part of reaching our carbon
reduction target. The transitioning of operating equipment will
be carried out gradually through replacement investments.
Before making any investments, the Group evaluates their
potential carbon emissions and environmental impact. This is an
integrated part of Grieg Seafood’s CapEx process.
As at 31 December 2023, the Group’s action plan for reducing
increasing its production volume, and the assessments for 2030
with increased personnel training, education and specialization,
carbon emissions (see below) has not had any material impact on
and 2050 are based on our business strategy and the targeted
investment in communication equipment and our focus on
our accounting estimates for the useful life of property, plant and
production volumes.
equipment, or materially impacted the Group’s impairment test
calculations. This is due to the gradual replacement of equipment
which generally has a useful life shorter than the timeframes
2C of global warming
In this scenario, Grieg Seafood assumes that the Paris
improving our smolt facilities, we believe that Grieg Seafood is
prepared to meet the challenges it will face in the future. The
issue of sea lice and their implications for the Group’s future
production is associated with high levels of uncertainty and
for the Group’s climate action targets. Furthermore, our budget
Agreement targets will be met. The Group assumes production
varies between regions. The future effects of increased seawater
(basis for the impairment tests) has factored in the quantifiable
of target volumes until 2030. How the Group’s production will
temperature on sea lice levels in the Group’s regions cannot be
nature- and climate related risks.
change towards 2050 is difficult to predict, but many initiatives
predicted without performing a comprehensive analysis. This is a
and forecasts look towards the ocean and aquaculture to provide
topic Grieg Seafood will further pursue in the future.
CLIMATE-RELATED RISK
The effects of climate change, such as extreme weather
more food for the future. With 2C of global warming, Grieg
Seafood’s business is well positioned to seize opportunities for
events, fluctuating temperatures in seawater and a decline
sustainable growth.
in biodiversity, could have a significant financial impact in
the decades ahead. Knowledge of the possible financial
Main impacts from the scenario:
consequences of global warming, biodiversity loss, or even
– Higher risk from transitional risks
ecosystem collapse, and the integration of climate risk and
– Carbon taxing
Reducing carbon emission
Last year, in 2022, Grieg Seafood developed a Climate Action
Plan, which describes the measures and investments needed
to reach the Group’s climate targets (reducing our carbon
emissions by 35% towards 2030, and 100% in 2050, with 2018
as a baseline year). This plan stresses the importance of both
nature risk as a separate risk category, are an essential part of
–
Initiatives to reduce deforestation increase cost of raw feed
operational measures, which affect Scope 1 and 2, and supply
Grieg Seafood’s risk management strategy. Grieg Seafood aim to
materials
increase its understanding of climate and nature-related risks, in
–
Increased cost of procured aquaculture equipment
order to find solutions to reduce adverse impacts.
– Policies and legislation that restrict production
Grieg Seafood has mapped its climate-related risks, which the
Group reports in accordance with the recommendations of the
4C of global warming
In this scenario, Grieg Seafood sees the need to differentiate
chain measures in Scope 3. Grieg Seafood needs to reduce
its operations’ fossil fuel consumption, purchase renewable
electricity and set supplier requirements to be able to reduce
its absolute emissions. The Group needs to invest in the
electrification of sites and boats, choose fish feed that has a
lower emission factor and reduce emissions from transportation.
Task Force on Climate-related Financial Disclosures (TCFD).
our products to prove their value with respect to sustainability.
Fish feed is our largest single source of GHG emissions (Scope
Grieg Seafood has also prepared a climate-related scenario
This comes with an increased cost and risk of lower earnings
analysis, assessing the impact of transitional risks and physical
potential. Meeting the Group’s Paris Agreement targets may
3). We are committed to continually challenging our fish feed
suppliers on the carbon emission from their production of the
risks. These risks and opportunities are included in the Group’s
adversely impact Grieg Seafood’s margins compared to our
fish feed. The Group’s largest direct source of emissions is from
risk assessment as part of Grieg Seafood’s regular forecast
competitors, and the Group must base its business viability on
the fuel that powers our boats, including well-boats, vehicles,
process. The results from the TCFD scenario analysis are
specific customer groups.
and on-site electricity generators.
summarized below.
Overall, Grieg Seafood expects the impacts of climate-related
– Temperature increases and daily temperature variations
the Group’s current efforts are focused on actionable measures
risks to be moderate in the short term, with no quantifiable
may increase events that are stressful for the salmon
impact as per year-end 2023, but these impacts could become
– More frequent extreme weather events increase the
to meet the 2030 target. Actionable measures to meet the 2050
target will be set when we are closer to the calender year of
more severe in the medium to long term. Any significant physical
personnel risk (HSE) associated with operating exposed
2030.
Main impacts from the scenario:
As the Climate Action Plan is staged in 2030 and 2050 targets,
change is likely to interfere with the Group’s current business
model or damage the Group’s facility infrastructure, both of
which could be costly. Similarly, the transitional risks related
to increased climate-change regulation or significant changes
in consumer preferences could affect the Group’s bottom line
and access to capital. On the other hand, the Group sees Grieg
Seafood as being uniquely placed to mitigate these risks and take
advantage of climate-related opportunities.
PART 03 - OUR FINANCIAL RESULTS
sites
– More droughts and floods reduce the production of land-
based feed ingredients, which increases feed cost
We are working closely with the salmon feed suppliers and focus
on sustainable feed ingredients. In addition, the Group expects
that new technology and transport of more processed products
will enable us to reduce our carbon emissions from freight
transport.
90
NOTE 4 FINANCIAL RISK MANAGEMENT
CAPITAL MANAGEMENT
The Group aims to ensure sufficient access to capital to enable
FINANCIAL RISK FACTORS
The Group is exposed to a number of financial risks: market
the business to develop in accordance with adopted strategies,
risk (including foreign exchange risk, interest rate risk and
and thus continue to be one of the leading players in the salmon
price risk), credit risk and liquidity risk. The Group’s overall risk
farming industry. Historically, the industry has always been
management program focuses on the volatility of the financial
vulnerable to price fluctuations in the market. For this reason,
markets and seeks to minimize potential adverse effects on
accounting results may fluctuate considerably from year to year.
the Group’s financial performance. The Group uses short-term
Consequently, the Group strives to ensure that the business
financial derivatives to reduce certain risks. Such contracts are
maintains an appropriate level of liquidity.
recognized at fair value through profit or loss and presented as
The Group’s funding is primarily syndicated debt with banks
December 2022), the Group does not apply hedge accounting. The
in addition to a green bond loan. The level of liabilities and
Group identifies, evaluates and hedges financial risks in close
alternative forms of funding are subject to constant evaluation.
cooperation with the Group’s operational units. The Board has
financial income/financial expenses. As at 31 December 2023 (31
TRADE RECEIVABLES AND
TRADE PAYABLES
CURRENCY IN NOK 1 000
2023
Trade receivables
Trade payables
2022
Trade receivables
Trade payables
NET INTEREST-BEARING LIABILITIES
CURRENCY IN NOK 1 000
2023
Cash and cash equivalents
Loans to associated companies
NOK
CAD
EUR
USD
GBP
OTHER
TOTAL
77 744
79 815
544 185
195 287
214 681
1 911
556 910
143 587
15 276
16 603
23 901
12 590
154 221
3 390
17 207
1 044
—
751
1 517
174
104
535
327 160
760 753
-81
259 137
3 193
717 498
NOK
CAD
EUR
USD
GBP
OTHER
TOTAL
30 452
32 529
138 121
—
144
—
47 601
—
—
—
—
—
216 318
32 529
As at 31 December 2023, the Group had a good financial
established written principles for the management of foreign
Gross interest-bearing liabilities*
3 749 524
798 184
650 265
-52 476
-16 068
-1 698
5 127 730
foundation, with cash and cash equivalents of NOK 216 million
exchange risk, interest rate risk and use of the Group’s financial
and unutilized facilities of NOK 887 million. See Note 27 for more
instruments.
information.
Grieg Seafood aims to provide shareholders with a competitive
return on invested capital through payment of dividends and
I) MARKET RISKS
(I) FOREIGN EXCHANGE RISK
The Group operates internationally and is exposed to foreign
share price increases. The Board of Directors maintains that, as
exchange risk relating to various currencies, primarily CAD,
an average over time, dividends should correspond to 30-40%
EUR, USD and GBP. Foreign exchange risk arises from future
of the Group’s profit after tax, adjusted for the effect of the
commercial transactions, recognized assets, and liabilities and
Net interest-bearing liabilities
3 686 542
660 062
650 122
-100 077
-16 068
-1 698
4 878 884
2022
Cash and cash equivalents
284 965
134 040
87 485
88 647
41 877
5 705
642 719
Money market funds
Loans to associated companies
1 012 848
8 300
—
—
—
—
Gross interest-bearing liabilities*
2 678 379
452 331
755 679
—
—
—
—
—
—
—
—
—
1 012 848
8 300
3 886 390
Net interest-bearing liabilities
1 372 266
318 292
668 194
-88 647
-41 877
-5 705
2 222 522
fair value of biological assets (limited to 50% by Green Bond
net investments in foreign operations. The Group enters into
*See Note 27 for more information on the Group’s interest-bearing liabilities.
agreement). At the same time, the Group’s net interest-bearing
foreign currency forward contracts to manage this risk.
debt per kg harvested salmon should remain below NOK 40, but
can be exceeded in periods of growth investments.
PART 03 - OUR FINANCIAL RESULTS
The Group has investments in foreign subsidiaries whose net assets are exposed to foreign currency translation risk. Currency exposure
arising from the net assets of the Group’s foreign operations is managed primarily through intercompany borrowings denominated in the
relevant foreign currencies.
The term-loan facility of the syndicated bank loan is split into NOK and EUR. Since a substantial portion of the Group's sales revenues are
denominated in EUR, the EUR loan acts as a natural, economical hedge on foreign currency translation rate fluctuations.
SENSITIVITY ANALYSIS
The sensitivity of a depreciation (appreciation) of 5% change in NOK foreign exchange rates versus CAD, EUR, USD and GBP at the
balance sheet date (all other factors remaining unchanged) would be expected to have the following effects on the Group's profit after tax,
other comprehensive income and total comprehensive income / equity effect. The OCI item reflect agio on intercompany long-term loans
and the effect of translating the foreign subsidiary financials to the Group’s presentation currency, while the profit after tax-item include
trade receivables and trade payables (incl. intercompany items), term-loan, lease liabilities, cash and cash equivalents and foreign
currency derivative contracts.
SENSITIVITY NOK 1 000
CAD
EUR
USD
GBP
TOTAL
31.12.2023
Profit after tax
Other comprehensive income
Total comprehensive income / effect on equity
31.12.2022
Profit after tax
Other comprehensive income
Total comprehensive income / effect on equity
-/+
-/+
-/+
-/+
-/+
-/+
8 487
25 660
34 147
21 478
24 335
45 813
-32 533
—
-32 533
-25 703
—
-25 703
-632
—
-632
1 270
—
1 270
-570
—
-570
—
—
—
-25 249
25 660
411
-2 955
24 335
21 380
91
FORWARD CURRENCY CONTRACTS AT FAIR VALUE THROUGH PROFIT AND LOSS
AMOUNT CURRENCY
IN 1 000 BOUGHT
AMOUNT CURRENCY
IN 1 000
2 372
1 073
8 528
NOK
NOK
NOK
22 147
CAD
26 259
14 680
100 580
29 852
SOLD
USD
GBP
EUR
USD
Total
*Maturity specified as an interval for multiple contracts
31.12.2023
WEIGHTED
HEDGING
RATE MARKET RATE
MATURITY INTERVAL *
11.0702
13.6809
11.7940
1.3479
10.1724
16.01.2024 - 17.06.2024
12.9342
23.01.2024 - 06.02.2024
11.2405
30.01.2024 - 30.12.2024
1.3251
04.01.2024 - 08.02.2024
AMOUNT CURRENCY
IN 1 000 BOUGHT
AMOUNT
CURRENCY IN 1 000
31.12.2022
WEIGHTED
HEDGING
RATE MARKET RATE
MATURITY INTERVAL *
2 600
3 518
NOK
NOK
415
CAD
27 376
37 091
561
10.5291
10.5433
1.3515
10.5138
01.01.2023 - 03.01.2023
9.8573
03.01.2023 - 29.12.2023
1.3538
06.01.2023 - 03.02.2023
SOLD
EUR
USD
USD
Total
*Maturity specified as an interval for multiple contracts
MARKET VALUE
NOK 1 000
2 243
843
4 525
4 241
11 852
MARKET VALUE
NOK 1 000
29
2 721
-9
2 741
(II) INTEREST RATE RISK
Since the Group has no significant interest-bearing assets apart from bank deposits, its income and operating cash flows are largely
independent of changes in market interest rates. The Group’s interest rate risk arises from borrowings. Borrowings at variable rates
expose the Group to cash flow interest rate risk. Fixed-interest contracts are used to reduce this risk. The Group continuously monitors
its interest rate exposure. The Group calculates the impact on profit or loss of a defined interest rate change. The same change in the
interest rate is used for all currencies in each simulation. The scenarios are only run for liabilities that represent major interest-bearing
positions.
Sensitivity calculations show the following expected values: If the interest rate had been 100 basis points lower (higher) throughout the
year, all other factors remaining unchanged, the pre-tax profit would have increased (decreased) by NOK 30.4 million in 2023 and NOK
28.3 million in 2022 due to the floating rate of interest on loans and deposits. The sensitivity analysis is calculated based on our term
loans in NOK and EUR (including revolving credit facility and overdraft) and bond loan, irrespective of concluded interest rate swap
agreements.
SENSITIVITY NOK 1 000
Effect on profit before income tax
CHANGE IN BASIS POINTS
2023
2022
-/+100
+/- 30 439
+/- 28 257
The sensitivity table is for our bank and bond loans. A reduction in interest rates will increase profit before tax.
INTEREST RATE SWAP AGREEMENTS
The purpose of the Group’s risk management activities is to establish an overview of the financial risk that exists at any given time and
to provide more time to adapt to relevant developments. To this end, the Group has chosen to employ interest rate swap agreements to
establish greater stability for the Group’s loan-related, variable-rate interest expenses. The Group has decided that at any given time, a
certain percentage of its variable interest-bearing liabilities should be hedged using interest rate swap agreements. A given proportion
will always be at a floating rate, while the remainder will be subject to potential hedging. This situation is constantly reviewed in light of
the market situation.
PART 03 - OUR FINANCIAL RESULTS
INTEREST RATE SWAP
PRINCIPAL
NOK 1 000
FIXED
RATE (%)
BASIS OF
FLOATING RATE
MATURITY
MARKET VALUE
NOK 1 000
31.12.2023
MARKET VALUE
NOK 1 000
31.12.2022
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
Fixed rate paid - floating rate received
NOK 200 million
1.61
1.35
1.07
0.71
0.72
3.16
Nibor 3 months
28.08.2023
Nibor 3 months
04.03.2024
Nibor 3 months
05.07.2024
Nibor 3 months
18.12.2024
Nibor 3 months
18.12.2024
Nibor 3 months
30.08.2027
—
1 677
5 391
7 187
7 181
1 875
2 670
5 018
7 627
9 963
9 961
—
Total
23 312
35 238
IBOR REFORM
The Group is exposed to the ongoing IBOR reform, as the Group has bank and bond loans, and engages in interest-rate swaps, which
are exposed to the relevant IBOR rate. The bank loans, which are denominated in NOK and EUR, carry an interest rate which is based on
the 3M IBOR plus a margin set per interest period based on a margin ratchet. The 3M IBOR and the margin are fixed per interest period.
The bond loan’s interest rate, which is denominated in NOK, is 3M NIBOR plus a margin of 3.4 percentage points. 3M NIBOR is fixed per
interest rate period.
The Group monitors the IBOR reform and its potential impacts on the Group. As at 31 December 2023, the IBOR reform is not expected to
significantly impact the Group. The information concerning our interest rate swaps disclosed above, explicitly states the swaps exposed to
NIBOR.
(III) PRICE RISK
Financial salmon price contracts allow the buyer and seller to agree prices and volumes for future delivery. The Group uses financial
contracts to hedge the sales price for the volume harvested by our two Norwegian regions, Rogaland and Finnmark.
For the financial contracts entered into with Fish Pool, changes in unrealized gains and losses on the sale and purchase agreements are
recognized net in the income statement as a fair value adjustment of biological assets, while the carrying value is reported as a derivative in
the statement of financial position at the gross carrying amount of sales and contracts, respectively. As biological assets are recognized at
fair value, the expected costs to meet contract terms will be included in the fair value adjustment. We target a contract share of 20-50% of
our Norwegian volume. In 2023, financial fixed-price contracts accounted for 16% (22%) of the volume harvested in our Norwegian regions.
As at 31 December 2023, the Group had financial salmon contracts totaling NOK -1.7 million (2022: NOK -64.9 million), of which all were
sales contracts. The estimated contract share for the Norwegian harvest volume is 6% for the full-year 2024.
II) CREDIT RISK
Credit risk is managed at Group level. Credit risk arises from transactions involving derivatives and deposits in banks and financial
institutions, transactions with customers, including trade receivables, and fixed contracts as well as loans to associates. The sales
companies secure the bulk of the sales through credit insurance and bank guarantees. The Group has procedures to ensure that
products are only sold to customers with satisfactory creditworthiness. The Group normally sells to new customers solely against
presentation of a letter of credit or against advance payment. For customers who have a reliable track record with the Group, sales up
to certain previously agreed levels are permitted without any security. The Group utilizes a factoring arrangement for sales transactions
entered into by the Norwegian sales organization.
The book value of financial assets represents the maximum credit exposure. For further information about loss allowance, please refer to
Note 20.
MAXIMUM CREDIT RISK EXPOSURE NOK 1 000
Trade receivables
Cash and cash equivalents
Total
NOTE
20
23
2023
109 187
216 318
325 505
2022
64 283
642 719
707 002
92
III) LIQUIDITY RISK
The Group adopts a prudent approach to liquidity risk management, which includes maintaining sufficient cash and marketable
securities, securing funding through sufficient credit facilities and maintaining the ability to close market positions when considered
appropriate.
Management monitors the Group's liquidity reserve, which comprises a bond and loan facility (see Note 27), cash and cash equivalents
(Note 23), and short-term money market investments (Note 22). Cash flow forecasts for all farming regions, sales and the whole Group
are performed regularly, and simulation/stress testing of the liquidity risk is carried out. This is generally carried out at Group level in
cooperation with the operating companies.
Management and the Board seek to maintain a high equity ratio (49% at 31 December 2023), to be well positioned to meet financial and
operational challenges.
The following table is a specification of the Group’s financial liabilities, classified by maturity structure.
31.12.2023
NOK 1 000
Green bond loan instalment
Green bond loan interest*
Term-loan instalment
Term-loan interest*
< 3 M
—
3 M
- 1 Y
Y 2
— 1 392 500
28 057
86 693
57 375
Y 3
—
—
Y4
—
—
66 377
66 377
132 753
132 753
995 648
19 634
65 111
67 318
59 838
14 025
Revolving credit and overdraft installment
63 113
—
—
—
750 000
Revolving credit and overdraft interests*
12 120
37 306
49 425
49 425
12 120
Y 5
> 5 YRS
TOTAL
—
—
—
—
—
—
— 1 392 500
—
172 125
— 1 393 908
—
—
—
225 926
813 113
160 396
Other non-current liabilities
5 577
11 176
13 490
15 772
15 391
15 262
67 094
143 761
Lease liabilities
Trade payables
Derivative financial instruments
Other current liabilities
Total liabilities
M = Months, Y = Year, YRS = Years, * = floating
31.12.2022
NOK 1 000
Green bond loan instalment
Green bond loan interest*
89 784
274 425
300 234
274 530
233 619
151 077
312 041
1 635 709
760 753
—
8 741
-7 033
15 667
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
760 753
1 709
15 667
1 069 823
534 055
2 013 094
532 318
2 020 803
166 339
379 134
6 715 567
< 3 M
—
3 M
- 1 Y
—
Y 2
Y 3
— 1 423 500
23 070
72 094
95 951
47 713
Y4
—
—
Y 5
> 5 YRS
TOTAL
—
—
— 1 423 500
—
238 829
Non-current term-loan instalment
64 106
64 106
128 211
128 211
128 211
961 584
— 1 474 429
Term-loan interest*
10 860
31 273
38 412
34 470
30 638
7 007
—
152 661
Other non-current liabilities
4 829
12 609
14 471
12 615
12 860
13 770
61 285
132 439
Lease liabilities
Trade payables
Derivative financial instruments
Other current liabilities
Total liabilities
M = Months, Y = Year, YRS = Years, * = floating
71 460
187 538
226 320
139 445
127 249
97 112
136 986
986 111
717 498
—
28 526
36 401
76 585
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
717 498
64 928
76 585
996 935
404 021
503 366
1 785 955
298 959
1 079 474
198 271
5 266 981
PART 03 - OUR FINANCIAL RESULTS
93
NOTE 5 SEGMENT INFORMATION
ACCOUNTING POLICIES
Operating segments are reported in a manner consistent with internal reporting to the chief operating decision-maker. The chief
operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has
been identified as the group management.
The operating segments are identified on the basis of the reports which Group management uses to assess performance and
profitability at a strategic level. Group management assesses business activities from a geographical perspective, based on the
location of assets. The Group has one production segment: Production of farmed salmon. Earnings from the sales companies in
the Group are reported per producer. Geographically, management assesses the results of production in Rogaland – Norway,
Finnmark – Norway, British Columbia – Canada, and Newfoundland – Canada. Group management evaluates the results from the
segments based on Operational EBIT.
The method by which Operational EBIT is calculated excludes the effect of non-recurring costs, such as restructuring costs, legal
costs on acquisition and impairment of goodwill and intangible assets, when impairment is attributable to an isolated event which
is not expected to recur. Costs or gains which relate to prior years and not to the current operation of Grieg Seafood, are not
included as Operational EBIT, as such costs are not considered meaningful for the comparability of the Group's results from one
period to another. See Alternative Performance Measures.
RECONCILIATION OF OPERATIONAL EBIT WITH EBIT IN THE INCOME STATEMENT NOK 1 000
2023
2022
Sales revenues
Other income
Other gains/losses
Share of profit from associates (operational)
Raw materials and consumables used
Salaries and personnel expenses
Other operating expenses
Operational EBITDA
Depreciation property, plant and equipment
Amortization licenses and other intangible assets
Operational EBIT
Share of profit from associates (non-operational)
Write-down of non-current assets (non-operational)
Production fee
Fair value adjustment of biological assets
Litigation and legal claims
Decommissioning costs
7 019 632
7 163 956
38 497
-6 959
-6 957
31 490
13 393
-1 463
-2 747 944
-2 233 655
-725 653
-695 577
-2 236 165
-2 087 310
1 334 451
-532 911
-21 792
779 747
—
136
-34 987
217 922
20 427
-2 515
2 190 834
-434 641
-16 706
1 739 486
22 558
-140 074
-26 350
83 412
-157 065
-24 382
EBIT (Earnings before interest and taxes)
980 730
1 497 586
2023
SEGMENTS
NOK 1 000
Sales revenues
Other income
Other gains/losses
Share of profit from associates
FARMING NORWAY
FARMING CANADA
ELIM/OTHER
GRIEG SEAFOOD
GROUP
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEW-
FOUNDLAND
2 305 214
1 946 648
1 468 303
235 715
1 063 750
7 019 632
93 550
-1 710
2 386
28 335
-3 678
-9 343
7 884
-2 771
—
2 186
-93 458
—
—
1 200
—
38 497
-6 959
-6 957
Operating costs before depreciation and amortization
-1 560 157
-1 473 517
-1 428 871
-241 463
-1 005 754
-5 709 761
Depreciation and amortization
-102 834
-161 828
-138 444
-142 545
-9 051
-554 703
Operational EBIT
736 449
326 617
-93 899
-146 107
-43 312
Harvest volume (tonnes GWT)
25 980
25 170
17 682
3 184
Sales revenue/kg (NOK)
Farming cost/kg (NOK)
Other costs/kg (NOK) *
Operational EBIT/kg (NOK)
Total assets
Total liabilities
*Other costs incl. ownership and headquarters costs/kg (NOK)
2022
SEGMENTS
NOK 1 000
Sales revenues
Other income
Other gains/losses
Share of profit from associates
88.7
60.4
—
28.3
77.3
64.4
—
13.0
83.0
88.4
—
-5.3
74.0
95.9
24.0
-45.9
—
n/a
n/a
n/a
n/a
779 747
72 015
82.7
70.2
1.7
10.8
3 062 846
4 503 373
2 541 031
4 180 619
-624 616
13 663 252
931 648
2 171 857
1 316 620
4 151 619
-1 577 662
6 994 082
FARMING NORWAY
FARMING CANADA
ELIM/OTHER
GRIEG SEAFOOD
GROUP
ROGALAND
FINNMARK
BRITISH
COLUMBIA
NEW-
FOUNDLAND
2 123 671
2 629 226
1 665 105
81 137
-1 954
7 195
18 619
11 965
-8 658
8 649
-4 475
—
—
321
—
—
745 954
-77 237
7 858
—
7 163 956
31 490
13 393
-1 463
Sales revenue/kg (NOK)
Farming cost/kg (NOK)
Other costs/kg (NOK) *
Operational EBIT/kg (NOK)
Total assets
Total liabilities
Operating costs before depreciation and amortization
-1 356 928
-1 579 017
-1 279 079
-40 576
-760 943
-5 016 543
Depreciation and amortization
-98 536
-145 997
-119 789
-74 474
Operational EBIT
754 585
926 139
270 411
-114 728
Harvest volume (tonnes GWT)
28 387
36 024
20 286
74.8
48.2
—
26.6
73.0
47.3
—
25.7
82.1
68.8
—
13.3
-12 552
-96 920
—
n/a
n/a
n/a
n/a
-451 347
1 739 486
84 697
75.8
52.7
2.5
20.5
—
n/a
n/a
n/a
n/a
2 920 718
3 422 148
1 913 438
3 116 131
1 502 930
12 875 365
1 236 330
1 610 495
692 878
2 735 606
114 349
6 389 657
*Other costs incl. ownership and headquarters costs/kg (NOK).
Sales revenue on regional level comprises revenue from the sale of Atlantic salmon including gains/loss on contracts. Other income at regional level includes the sale of byproducts
(such as ensilage), as well as income from the sale of smolt, fry and roe. At the Group level, such income is reclassified to sales revenue in the "Elim/Other"column in the Group's
segment information. On regional level, other income also includes rental income and income from overcapacity of operational assets. Gains/losses from the sale of fixed assets and
other equipment, are included in the line “other income” in the segment information. Profit and loss from associated companies that are closely related to the Group's operations and
included in the Group’s value chain, for example when the relevant associates operate in the same position in the value chain as the Group, are included in the Group's Operational
EBIT. Otherwise, the profit from associates is excluded and presented as share of profit from associates (non-operational) in the Group’s segment information. The elim/other items
comprise, in addition to intercompany eliminations and the effect of share-based payments, the profit/loss from activities conducted by the parent company or other Group companies
not geared to production. Earnings from the sales companies in the Group are reported per producer. The elim/other column thus include the effect the sales organization has on the
gross figures related to sales revenue and operating expenses, as well as the impact the other non-farming entities has on the Group’s consolidated figures.
Sales revenue/kg reported in the segment information is equal to the sum of sales revenue of the regions divided by the related harvest volume. Group sales revenue is calculated
based on the farming operation of the Group, excluding sales revenue from Group companies not geared for production.
PART 03 - OUR FINANCIAL RESULTS
94
Farming cost/kg reported in the segment information comprise all cost directly related to production and harvest of salmon, divided by the related harvest volume. On regional level,
farming costs equal the operational costs. Other income are included in the farming cost metric, considered as cost reduction activities. Group farming cost is calculated based on the
farming operation of the Group, excluding ownership costs and costs from Group companies not geared for production.
Other costs incl. ownership and headquarter costs/kg reported in the segment information include all costs and revenue not directly related to production and harvest of salmon,
hereof the costs from activities conducted by the parent company and other Group companies not geared for production, divided by the Group's harvest volume. Operational EBIT/kg
reported in the segment information is equal to the operational EBIT divided by the related harvest volume.
See Alternative Performance Measures for more information on the non-IFRS measures relating to sales revenue/kg, farming cost/kg, other costs incl. ownership and headquarters
costs/kg and Operational EBIT/kg.
SALES REVENUE IN TOTAL
Sales revenues are recognized at the point in time when control of the fish has been transferred to the customer. This will normally be
upon delivery. In 2023, the sale of fresh whole Atlantic salmon totaled 93% (2022: 97%) of the Group's sales revenues (excluding other
products), while fresh processed fish accounted for 4% (2022: 2%).
SALES REVENUES FROM
CONTRACTS WITH CUSTOMERS, BY
GEOGRAPHICAL MARKET
NOK 1 000
NORWAY*
CANADA*
TOTAL
2023
2022
2023
2022
2023
2023%
2022
2022%
NOTE 6 SALES REVENUES
ACCOUNTING POLICIES
UK
USA
Canada
Asia
Other markets
Total
Continental Europe
3 690 607
4 152 843
384 716
247 295
—
—
—
—
3 690 607
53%
4 152 843
384 716
5%
247 295
316 139
181 659
1 228 930
1 323 551
1 545 069
22%
1 505 210
49 944
87 722
586 334
466 935
636 279
702 646
584 914
36 694
67 028
739 340
23 621
52 008
—
—
23 621
9%
11%
0%
554 657
651 943
52 008
5 167 674
5 306 441
1 851 957
1 857 515
7 019 632
100%
7 163 956
100%
58%
3%
21%
8%
9%
1%
SALE OF ATLANTIC SALMON
Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at
an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The
Group’s revenue derives primarily from the sale of whole and processed fish. Sales contracts cover both spot sales and fixed-price
deliveries. Revenue from the sale of salmon is generally recognized upon delivery, as the Group considers delivery as the point
in time when control of the goods/service is transferred to the customer. Each sales contract – either for a spot sale or a fixed
delivery – is considered as one performance obligation. Each week, the sale of fish is settled with the customers. The fixed-price
delivery contracts that are entered into with customers, specify a per-week volume.
The sales price is determined upon contract settlement and is based on available market price (for example Nasdaq prices
including transport and margin, with a price per kilogram). The price varies according to the quality and weight of the salmon.
Payment is settled upon delivery, and the performance obligation related to the sale of fish is satisfied at delivery.
The normal credit term of the Group’s sales transactions is 30 days. Based on the nature of the sale of fresh and frozen fish, the
Group generally has no material contract liabilities. The Group does not generally engage in customer contracts where fulfillment
of the performance obligation lies more than one year in the future. Therefore, the Group does not disclose further information on
contract liabilities and related performance obligations.
Cash refunds are given to the customer if the sold product is delivered with discrepancies compared to the agreed sales contract,
or if the product is damaged. Generally, refunds are not material.
Revenue is shown net of value added tax, returns, rebates and discounts and after eliminating intragroup sales.
OTHER REVENUE STREAMS
The Group’s revenue stream also comprises some ensilage (byproduct from the harvesting of Atlantic salmon), in addition to sales
of smolt, roe and and third-party harvesting if the Group has overcapacity at its facilities. Together, these have historically made up
a non-significant part of the total sales of Grieg Seafood.
*Sum of revenue from contracts with customers generated by the farming and sales organization, net of intercompany eliminations. See Note 5.
Grieg Seafood did not have any sales to Russia in 2023 or in 2022.
SALES REVENUES FROM CONTRACTS WITH CUSTOMERS, BY DISTRIBUTED
PRODUCTS
NOK 1 000
Fresh whole fish
Fresh processed fish
Frozen processed fish
Other products and services
Total
NORWAY*
CANADA*
TOTAL
2023
2022
2023
2022
2023
2022
4 864 040
5 149 017
1 686 482
1 805 633
6 550 522
6 954 650
136 072
57 142
164 134
51 588
300 206
108 729
95 227
53 373
32
72 335
46 909
1 310
10
284
95 259
53 383
73 645
47 193
5 167 674
5 306 441
1 851 957
1 857 515
7 019 632
7 163 956
*Sum of revenue from contracts with customers generated by the farming and sales organization, net of intercompany eliminations. See Note 5.
NOTE 7 SALARIES AND PERSONNEL EXPENSES
SALARIES AND PERSONNEL EXPENSES NOK 1 000
Salaries
Social security costs
Synthetic stock options granted to directors and key employees, incl. social security costs (Note 8)
Pension costs
Other personnel costs
Total
Average full time equivalents (FTE)
2023
579 759
41 388
1 584
34 188
68 733
2022
533 629
38 635
30 399
29 069
63 844
725 653
695 577
759
718
Pension obligations
The Group pays premiums to local, defined-contribution schemes for all employees. The Group's Norwegian pension schemes meet the
requirements of the Norwegian Mandatory Occupational Pension Act. Pension premiums are recognized in the income statement through
operations on an ongoing basis. Employer’s social security contributions are expensed based on paid pension premiums. Grieg Seafood
Rogaland AS and Grieg Seafood Finnmark AS have a contractual early retirement pension scheme (AFP). AFP is a multi-enterprise
defined benefit pension scheme that is booked as an defined contribution scheme as the Group cannot identify the obligation per
employee which is part of the scheme. The financial commitments associated with the AFP scheme are therefore included in the Group’s
pension expenses. The AFP early retirement scheme follows the rules for private sector AFP, and both companies are members
PART 03 - OUR FINANCIAL RESULTS
95
of the Norwegian Confederation of Trade Unions (LO)/the Confederation of Norwegian Enterprise (NHO) scheme. The pension payment
calculations are based on standard assumptions relating to the development of mortality and disability as well as other factors such as
age, years of service and remuneration. Pension premiums are recognized in the income statement through operations as they arise.
Share savings program
Grieg Seafood established a share savings program for its employees in 2018, which has continued throughout 2023. Each year has its
own set of terms and conditions concerning how much each employee can invest in the program that year. In addition, each year has it’s
set of terms for the lock-up period. The participating employees buy shares on a discount. The discount is recognized as a cost in the
income statement and included as an other personnel cost as presented in the table above. The total costs related to the discount was
NOK 2.1 million, in line with NOK 2.1 million in costs for 2022. The purchase price and the number of shares acquired by the company will
be reported in accordance with the applicable regulations.
At 31 December 2023, loan to employees related to the share savings program equals NOK 5.0 million (2022: NOK 4.9 million). The total
shares sold to employees was 107 473 in 2023 (2022: 96 150). See also Note 24.
Management remuneration
The guidelines for management remuneration are available on Grieg Seafood ASA’s website.
The remuneration to the Group Management Team is disclosed below.
REMUNERATION PAID TO GROUP MANAGEMENT TEAM
IN 2023 NOK 1 000
SALARY
BONUS
RETAINED
BONUS , NOT
YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Alexander Knudsen (Chief Operating Officer Farming
Europe)
Grant Cumming (Chief Operating Officer Farming
Canada)
Erik Holvik (Chief Commercial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen
(Chief Human Resource Officer)
Nina Stangeland (Chief Strategy Officer)
Kristina Furnes (Chief Communication Officer)
Total remuneration
4 003
2 885
2 270
2 347
2 435
2 259
1 833
524
1 348
19 903
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
TOTAL
4 457
3 020
2 601
2 600
2 573
2 406
1 985
568
1 463
454
136
331
252
139
147
152
44
116
1 770
21 673
REMUNERATION PAID TO GROUP MANAGEMENT TEAM
IN 2022 NOK 1 000
SALARY
BONUS
RETAINED
BONUS, NOT
YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION*
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Alexander Knudsen (Chief Operating Officer Farming
Europe)
Roy Tore Rikardsen (Chief Operating Officer Farming
Canada until 10 of June 2022)
Erik Holvik (Chief Commercial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen
(Chief Human Resource Officer)
Kristina Furnes (Chief Communication Officer)
3 644
2 349
2 066
1 802
2 247
2 098
1 631
1 229
1 007
612
321
-26
483
426
323
172
Total remuneration
17 067
3 318
—
—
—
—
—
—
—
—
—
4 540
3 202
2 917
2 917
3 070
2 883
2 209
1 773
23 509
*The CEO has in 2022 received a one-time payment in arrears for pension benefits.
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 8.
REMUNERATION PAID TO BOARD MEMBERS IN 2022 NOK 1 000
Per Grieg1
Tore Holand2
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg
Ragnhild Fresvik (from 9 of June 2022)
Total remuneration including social security costs
1 Payment for work performed on the Remuneration Committee of NOK 25 673 is included in the remuneration paid to Per Grieg and Marianne Ribe.
2 Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik, amounting to NOK 68 460.
The amounts include social security costs.
NOTE 8 SHARE-BASED PAYMENTS
TOTAL
12 144
6 282
5 637
4 740
5 923
5 538
4 296
3 282
2 954
120
332
47
123
131
133
108
3 948
47 842
TOTAL
516
401
328
372
308
183
2 107
Grant Cumming was appointed as Chief Operating Officer Farming Canada in Q1 2023, and Nina Stangeland appointed as Chief Strategy Officer in Q3 2023.
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 8.
ACCOUNTING POLICIES
REMUNERATION PAID TO BOARD MEMBERS IN 2023 NOK 1 000
Per Grieg1
Tore Holand2
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg
Ragnhild Fresvik (from 9 of June 2022)
Total remuneration including social security costs
1 Payment for work performed on the Remuneration Committee of NOK 25 525 is included in the remuneration paid to Per Grieg and Marianne Ribe.
2 Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik, amounting to NOK 79 870.
The amounts include social security costs.
TOTAL
542
422
342
394
314
314
2 328
The Group operates a share-based remuneration scheme with settlement in cash for the management team of the Group. The
options’ strike price is the stock market price on the date of issue, rising by 0.5% per month until the exercise date. The most
recent allocation was in 2023, totalling 2 680 000 options. The final exercise date is 31 May 2026. The options have a term of two
years, where 50% is vested each year. Employees taken on after the initial allocation of options are allocated options on taking up
employment.
The value of the synthetic stock options settles in cash is recognized as a salary and personnel cost in income statement (see Note
7) and as a liability in the statement of financial position (see Note 31) as well as the table in this note that specify the amounts in
the balance sheet.
The cost of the executive management synthetic option scheme is expensed over the average vesting period. The liability is
measured at fair value at each balance sheet date until settlement, and changes in the fair value are recognized in profit and loss.
Social security tax on options is recorded as a liability and is recognized over the estimated vesting period.
PART 03 - OUR FINANCIAL RESULTS
96
The Black and Scholes option pricing model is used for valuation. A brokerage firm is used to perform the calculations and the
measurement is according to level 3 of the fair value hierarchy. The table below shows the movement in outstanding options in 2023 and
2022.
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2023
OVERVIEW 2023
(TOTAL CASH-SETTLED OPTIONS)
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen (Chief Human Resource Officer)
Kristina Furnes (Chief Communication Officer)
Alexander Knudsen (Chief Operating Officer Farming Norway)
Grant Cumming (Chief Operating Officer Farming Canada)
Erik Holvik (Chief Commercial Officer)
Nina Stangeland (Chief Strategy Officer)
OUTSTANDING
OPTIONS AT
31.12.2022
229 764
80 799
88 302
49 011
39 262
86 832
—
65 788
—
380 000
250 000
100 000
100 000
100 000
170 000
170 000
170 000
100 000
Others
Total
135 260
1 140 000
775 016
2 680 000
—
—
—
—
—
—
—
—
—
—
—
59 764
—
3 302
—
—
1 832
—
—
—
—
550 000
330 799
185 000
149 011
139 262
255 000
170 000
235 788
100 000
1 275 257
64 898
3 390 118
OVERVIEW 2022
(TOTAL CASH-SETTLED OPTIONS)
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen (Chief Human Resource Officer)
Kristina Furnes (Chief Communication Officer)
Alexander Knudsen (Chief Operating Officer Farming Norway)
Roy Tore Rikardsen (Chief Operating Officer Farming Canada)
Erik Holvik (Chief Commercial Officer)
Others
Total
OUTSTANDING
OPTIONS AT
31.12.2021
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2022
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
—
—
—
—
—
—
—
—
—
—
310 236
189 201
181 698
150 989
60 738
183 168
183 168
104 212
416 863
—
—
—
—
—
—
86 832
—
47 877
1 780 273
134 709
229 764
80 799
88 302
49 011
39 262
86 832
—
65 788
135 260
775 016
ALLOCATION:
YEAR - MONTH
EXPIRY DATE: YEAR
- MONTH
STRIKE PRICE NOK
PER SHARE AT
31.12.2023
STRIKE PRICE NOK
PER SHARE AT
31.12.2022
2020 - 12
2020 - 12
2023 - 12
2023 - 12
Total
2023 - 05
2024 - 05
2026 - 05
2027 - 05
—
94.03
79.20
79.20
83.82
94.03
na
na
OUTSTANDING OPTIONS
TOTAL
OUTSTANDING OPTIONS
VESTED
2023
—
2022
64 898
2023
—
2022
64 898
710 118
710 118
710 118
710 118
1 340 000
1 340 000
—
—
—
—
—
—
3 390 118
775 016
710 118
775 016
Cash-based options available for settlement
Weighted average exercise price on outstanding options (NOK per option)
PART 03 - OUR FINANCIAL RESULTS
2023
2022
3 390 118
775 016
76.56
78.96
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2023
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2023
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2023
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2023
AMOUNTS IN NOK 1 000
2023
Former employees with expired
options**
Andreas Kvame (Chief Executive
Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Kristina Furnes (Chief
Communication Officer)
Alexander Knudsen (Chief
Operating Officer Farming
Norway)
Erik Holvik (Chief Commercial
Officer)
Other options allocated in 2020
Andreas Kvame (Chief Executive
Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Kristina Furnes (Chief
Communication Officer)
Alexander Knudsen (COO Farming
Norway)
Alexander Knudsen (Chief
Operating Officer Farming
Norway)
Erik Holvik (Chief Commercial
Officer)
Nina Stangeland (Chief Strategy
Officer)
Other options allocated in 2023
Total
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
75.93
75.93
75.93
75.93
75.93
75.93
75.93
75.93
75.93
75.93
—
4.35
6.34
5.82
7.20
6.04
5.87
6.13
7.04
4.29
4.22
7.97
6.53
5.26
5.43
5.95
5.30
6.24
5.28
—
—
—
1 480
1 652
-1 488
1 078
989
720
604
999
1 042
3 519
1 632
1 055
797
653
526
923
1 011
901
624
5 227
669
663
442
354
654
606
-589
-579
-392
-316
-570
-542
1 469
-1 334
—
—
—
—
—
—
—
—
—
—
803
519
390
320
258
453
497
443
306
2 877
23 777
6 510
1 056
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
* Amounts exclude social security costs.
** The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in cash.
—
163
81
84
50
39
84
65
135
803
519
390
320
258
453
497
443
306
2 877
7 566
97
AMOUNTS IN NOK 1 000
COSTS RELATED TO CASH OPTIONS NOK 1 000
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL
VALUE
OF ALL
OPTIONS AT
01.01.2022
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION
2022
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2022
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2022
—
—
—
—
6 887
—
1 480
1 408
244
2 541
2022
Former employees with expired
options**
Andreas Kvame (Chief Executive
Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Kristina Furnes (Chief
Communication Officer)
Alexander Knudsen (COO Farming
Norway)
Roy Tore Rikardsen (COO Farming
Canada)
Erik Holvik (Chief Commercial
Officer)
Andreas Kvame (Chief Executive
Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Other options allocated in 2020
Other options allocated in 2017
Total
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
78.96
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
2.26
2.79
2.79
2.38
7.04
2.35
1 078
989
720
604
999
999
1 042
906
557
557
475
3 519
1 880
909
840
600
511
847
847
881
7
4
4
4
-240
2 202
-177
1 883
-158
1 210
-157
1 773
-193
1 917
-847
1 917
-274
3 070
-7
-4
-4
-4
1 999
999
999
999
9 628
2 998
2 921
-1 451
11
-11
15 802
9 792
-3 283
34 135
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1 652
669
663
442
354
654
—
606
—
—
—
—
1 469
—
6 510
* Amounts exclude social security costs.
** The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in cash.
RECOGNIZED LIABILITY, COSTS AND KEY ESTIMATES USED FOR THE FAIR VALUE CALCULATION
OF OPTIONS
As at 31 December 2023, fair value of outstanding options with the right to cash settlement were NOK 8 million (NOK 7 million). In
addition, social security costs is included in the recognized liability in the statement of financial position, which totaled NOK 1.4 million
(NOK 0.9 million) bringing the total recognized liability to NOK 9.0 million (NOK 7.4 million). See the table below for specification of the
liability as per the balance sheet date.
FAIR VALUE OF SYNTHETIC
OPTIONS
SOCIAL SECURITY COSTS
TOTAL RECOGNIZED LIABILITY
RECOGNIZED LIABILITY IN THE STATEMENT OF
FINANCIAL POSITION NOK 1 000
Non-current liabilities
Current liabilities
Total
2023
6 867
700
7 566
2022
5 921
589
6 510
2023
1 312
134
1 445
2022
835
83
918
2023
8 178
833
9 012
2022
6 756
672
7 428
Change in provisions
Exercised options during the year
Total costs excl. social security costs
Social security costs
Total costs incl. social security costs
2023
1 056
—
1 056
527
1 584
2022
CLASSIFICATION IN FINANCIAL STATEMENTS
-3 282
Other provisions for liabilities
34 137
Salaries and personnel expense / cash
30 855
-456
Public taxes payable
30 399
Salaries and personnel expense
The total cost incl. social security costs totaled NOK 1.6 million (NOK 30.4 million) These costs are recognized in the income statement
as an other personnel cost (see Note 7). Social security contributions are provided for on an ongoing basis based on the fair value of the
options.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
Anticipated volatility (%)
Risk-free rate of interest (%)
Estimated qualification period (years)
2023
45.63%
4.00%
2.33
2022
58.29%
3.12%
1.11
The estimated qualification period for the options is based on historical data, and does not necessarily represent future developments.
In order to estimate volatility, management has applied historical volatility for comparable listed companies.
NOTE 9 OTHER OPERATING EXPENSES
OTHER OPERATING EXPENSES NOK 1 000
Transportation costs
Maintenance costs
Electricity and fuel
Lease expenses1
Outsourced services and audit fees
Insurance
IT expenses
Marketing costs
Other operating expenses2
Other production-related costs1,3
Total other operating expenses
2023
433 469
346 941
179 076
28 563
98 980
115 583
84 225
14 327
162 689
772 312
2022
497 679
327 031
177 902
60 490
107 318
66 512
77 298
6 642
119 311
647 128
2 236 165
2 087 310
1Includes lease expenses and lease-related expenses, including the effect of IFRS 16.
2Includes equipment, telephony/postage, office supplies, fees, travel costs and the like.
3Production-related costs comprise harvesting costs including expenses for well-boat services, packaging material, diving services, vaccination, delousing, oxygen, and analyses and
the like.
PART 03 - OUR FINANCIAL RESULTS
98
BREAKDOWN OF TOTAL AUDITOR'S FEES NOK 1 000
2023
2022
AUDIT SERVICES
Group auditor
Other auditors
OTHER ASSURANCE AND CERTIFICATION SERVICES
Group auditor
Other auditors
TAX SERVICES
Group auditor
Other auditors
OTHER SERVICES
Group auditor
Other auditors
Total Group auditor
Total other auditors
Total auditor's fees
3 815
1 180
1 416
—
1 082
20
563
—
6 877
1 200
8 077
3 049
1 128
783
—
764
124
26
—
4 622
1 252
5 873
LITIGATION AND LEGAL CLAIMS
Three class-actions were filed in Canada (none has been certified as a class-action). Even though Grieg Seafood considers the complaints
to be entirely without merit, Grieg Seafood have agreed to a settlement offer from the plaintiffs and entered into a respective settlement
agreement in 22 September 2023 as the costs of litigation in Canada can be substantial. The settlement agreement was approved by the
Federal Court in February 2024. In 2022, incurred costs and provisions for expected costs related to the lawsuits in North America in total
of NOK 157 million were expensed, of which NOK 129 million were used at year end 2022. The remaining NOK 28 million were carried
over to 2023. After the settlement related payment was made, the remainder of the accrual was released. At year-end 2022, the accrual
was reported as other current liability in the Statement of Financial Position, while the costs in the income statement in 2023 and 2022
are presented as a separate financial statement line item - "Litigation and legal claims".
DECOMMISSIONING COSTS
Grieg Seafood has in 2022 discontinued production in the shíshálh (Sechelt) farming area of British Columbia. At year-end 2022, all fish
from the farming area of Sechelt have been harvested. The Group are required to decommission the sites and at year-end 2022 the Group
has accrued a total of NOK 24 million of clean-up costs. The decommissioning activities were finalized in 2023, following an additional
NOK 2.5 million in costs reported as decommissioning costs for the year. The costs are reported on the financial statement line item
"Decommissioning costs".
NOTE 11 FINANCIAL INCOME AND FINANCIAL EXPENSES
The auditor’s fees cover financial audit of the Group, assurance engagement on sustainability reporting and related services.
FINANCIAL INCOME AND FINANCIAL EXPENSES NOK 1 000
2023
2022
NOTE 10 CONTINGENT LIABILITIES, LITIGATION AND LEGAL
CLAIMS AND DECOMMISSIONING COSTS
CONTINGENT LIABILITIES
ACCOUNTING POLICIES
Contingent liabilities are defined as:
•
•
possible obligations resulting from past events whose existence depends on future events,
obligations that are not recognized because it is not probable that they will lead to an outflow of resources entailing financial
benefits from the company,
obligations that cannot be measured with sufficient reliability.
•
Contingent liabilities are not recognized in the annual financial statements apart from contingent liabilities resulting from the
acquisition of an entity.
In February 2019, the European Commission launched an investigation to explore potential anti-competitive behavior in the in the market
for spot sales of fresh, whole and gutted Norwegian farmed Atlantic salmon. In January 2024, Grieg Seafood received a Statement of
Objections from the European Commission related to its investigation. See Note 32 concerning events after the balance sheet date of
2023.
FINANCIAL INCOME
Realized gain (loss) on investment in money market fund
Unrealized gain (loss) on investment in money market fund
Net change in fair value of derivatives
Net currency gains
Other interest income
Other financial income
Total financial income
FINANCIAL EXPENSE
Interest expense on external borrowings and leases
Amortization of transaction cost on external borrowings
Net change in fair value of derivatives
Other financial expenses
Total financial expenses
Net financial items
41 461
-12 624
26 703
79 060
3 796
1 800
—
12 624
61 851
38 205
11 893
1 693
140 195
126 267
253 706
8 311
11 926
2 825
276 768
-136 573
156 067
16 471
—
3 672
176 210
-49 944
PART 03 - OUR FINANCIAL RESULTS
99
NOTE 12 INCOME TAXES
ACCOUNTING POLICIES
Income tax expense consists of tax payable and changes to deferred tax.
Deferred tax is provided for in full at nominal value, using the liability method, on temporary differences arising between the value
of assets and liabilities for tax and accounting purposes. The liability method is applied both for ordinary corporate taxation as well
as for the Norwegian resource rent tax scheme.
Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date and that
are expected to apply when the related deferred tax asset is realized, or the deferred income liability is settled. Deferred tax assets
are recognized to the extent that it is probable that future taxable income will be available, from which the temporary differences
can be deducted. Deferred tax is calculated on temporary differences arising on investments in subsidiaries and associates, except
where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary
difference will not be reversed in the foreseeable future. For the Norwegian resource rent tax scheme deferred tax liability is
recognized for temporary differences on biological assets allocated to fish farming licenses subject to the resource rent tax. The
deferred resource rent tax is recognized using the effective tax rate 25%. For the fish farming licenses subject to the resource rent
tax, no deferred tax liability is recognized, because a subsequent sale will not be subject to resource rent tax and the carrying value
is not realized through use. A deferred tax asset is recognized, with the effective rate of 25%, for any loss carried forward within the
resource rent tax regime as long as it probable that there is sufficient taxable income in future periods.
PART 03 - OUR FINANCIAL RESULTS
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
THE NORWEGIAN RESOURCE RENT TAX SCHEME
On 31 May 2023, the Norwegian Parliament passed the resource rent tax scheme on aquaculture in Norway. The tax scheme
applies to net profits from commercial sea-phase salmon aquaculture activity in Norway. The tax is an additional layer of taxation
on aquaculture, on top of ordinary corporate income taxation of 22%, bringing the total marginal tax rate for the in-scope
aquaculture activity to 47%. This new tax scheme was implemented retrospectively with effect from 1 January 2023. The Norwegian
resource rent tax will not affect the tax load of the Group’s operations in British Columbia and Newfoundland.
In December 2022, the Group carried out an internal reorganization, in which its commercial aquaculture licenses, together
with the connected standing biomass of live fish in sea, were transferred from Grieg Seafood Rogaland AS and Grieg Seafood
Finnmark AS to Grieg Seafood Rogaland Sjø AS and Grieg Seafood Finnmark Sjø AS, which are also (indirectly) wholly owned by
Grieg Seafood ASA. The biomass was transferred by way of a sale and purchase transaction at fair value, using tax discontinuity.
Both companies that acquired biomass chose to capitalize the acquisition costs in 2022 for tax purposes (as opposed to expensing
the acquisition costs), thereby carrying over these tax positions into 2023. With tax effect for 2023, the companies have deducted
the capitalized costs both in the basis for the ordinary corporate income tax, as well as in the basis for the new resource rent tax
scheme. Consequently, the Group has not recognized an implementation effect concerning the transitioning to the resources rent
tax scheme. If the deduction in the new resource rent tax scheme is not accepted by the tax authorities, the deferred tax asset
released to loss carried forward in the regime will be reduced accordingly.
As the Group has aquaculture licenses both in- and out-of-scope of the resource rent tax scheme, the income and expenses
related to the tax scheme have to be identified. To be able to calculate the resource rent tax in accordance with the chapter 19 of
the Norwegian tax law, a number of analyses have been performed related to transfer pricing according to the Norwegian tax law
chapter 13 and the OECD guidelines for transfer pricing. The implementation of the resources tax regime has resulted in changes
in process and procedures, transforming from an integrated value chain of breeding, freshwater and seawater farming and
harvesting of salmon to carving out the farming business subject to the resource rent tax into individual companies. The transfer
pricing model applied by the Group pursuant to the OECD transfer pricing guidelines induces that a variability in profitability mainly
affects the companies subject to resources rent tax. As this is a new tax, it is unknown how the tax authorities will assess the
methods used and the assumptions made. Management is, therefore, not able to quantify any meaningful sensitivity, caused by a
reasonable change in the assumptions applied.
Due to weak operational performance in Finnmark combined with a substantial share of non-commercial licenses (not being
subject to resource rent tax) in Rogaland, the basis for the resource rent tax is limited in 2023.
INCOME TAXES FOR THE YEAR IN THE INCOME STATEMENT NOK 1 000
Norway
Norway - resource rent tax
Abroad
Current income tax
Norway
Norway - resource rent tax
Abroad
Changes in deferred tax
Total income taxes related to profit for the year
2023
14 614
—
4 084
18 698
250 032
11 273
4 403
265 708
284 407
2022
263 084
—
59 422
322 506
116 873
—
-145 516
-28 643
293 863
100
TAX RECONCILIATION BETWEEN NOMINAL AND EFFECTIVE TAX RATES NOK 1 000
Profit before tax
Taxes calculated at nominal tax rate
Withholding tax
Non-taxable income/loss from associated companies
Effect of adjustment of income tax from previous years
Effect of recognition of previously non-recognized tax assets
Effect of non-recognition of losses and tax assets
Effect of resources tax
Other permanent differences
Total income tax expense
Weighted average tax rate
TAX PAYABLE BOOKED IN FINANCIAL STATEMENT CURRENT LIABILITIES NOK 1 000
Tax payable in Norway
Tax payable resource rent in Norway
Tax payable abroad
Total tax payable in the statement of financial position
CHANGE IN BOOK VALUE OF DEFERRED TAX NOK 1 000
Balance sheet value at 01.01.
Reclassified from deferred tax to tax payables *
Currency conversion
Tax effect of OCI transactions (see Note 25)
Other effects
Changes to income in the period
Changes to income in the period of resource rent tax
Net deferred tax liability at balance sheet date
2023
844 157
210 484
12 600
1 531
-10 436
—
74 439
11 273
-15 484
284 407
33.7%
2023
—
—
6 156
6 156
2023
1 041 101
-492 959
14 892
6 332
7 538
254 435
11 273
842 612
2022
1 447 642
286 185
6 085
-4 641
-27 453
-4 187
37 189
—
685
293 863
20.3%
2022
286 586
—
66 605
353 191
2022
1 069 743
—
30 467
5 454
-27 453
-37 111
—
1 041 101
*After the completion of the consolidated financial statements and before the submission of tax returns for each subsidiary, there was
a reclassification of deferred tax to payable tax, resulting in an impact on the consolidated financial statement. Instead of expensing all
costs associated with the biomass, the value of the biomass was capitalized for tax purposes, reflecting a general option available to
taxpayers. The corresponding amount was included in the tax payment for corporate income tax paid in 2023.
The nominal tax rate in Norway is 22% and the resource rent tax is 25%. The nominal tax rate for 2023 was 27% in British Columbia (BC)
and 30% in Newfoundland.
TOTAL DEFERRED TAX ASSETS/LIABILITIES IN THE STATEMENT OF FINANCIAL POSITION NOK 1 000
Deferred tax assets (+)
Deferred tax liabilities (-)
Net deferred tax (-)
2023
—
-842 612
-842 612
2022
—
-1 041 101
-1 041 101
The following tables provide a breakdown of deferred tax. The tax effects of taxable and deductible temporary differences are shown
separately. The Norwegian and Canadian parts of the Group each have a net deferred tax position. Deferred tax assets linked to tax losses
are offset against deferred tax liabilities in the tax jurisdictions where acceptable.
SPECIFICATION OF DEFERRED TAX AND TAX ASSETS NOK 1 000
Non-current assets
Current assets
Debt (lease, other liabilities)
Tax losses carried forward
Total recognized deferred tax liability ordinary taxation
Biological assets - deferred resource rent tax
Tax losses carried forward - resource rent tax
Total recognized deferred tax liability resource rent tax
2023
340 073
711 458
-76 484
-143 708
831 339
624 315
-613 042
11 273
2022
572 722
617 349
1 493
-150 461
1 041 101
—
—
—
Total recognized deferred tax liability
842 612
1 041 101
TAX LOSS CARRIED FORWARD ARE DIVIDED AMONG THE FOLLOWING JURISDICTIONS NOK 1 000
Tax losses carried forward resources rent tax in Norway
Tax losses carried forward in Canada
Total
2023
-613 042
-143 708
-756 750
2022
—
-150 461
-150 461
The tax loss carry forward in Norway has no expiration date. Losses in Canada have a 20-years carry forward period, with the first
expiration date in 2036. Deferred tax assets related to tax losses carried forward in Canada not book is NOK 96 million.
101
PART 03 - OUR FINANCIAL RESULTS NOTE 13 INTANGIBLE ASSETS
ACCOUNTING POLICIES
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a
business combination is the fair value of the asset at the date of the acquisition.
Intangible assets that arise internally within the Group are not recognized.
GOODWILL
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets of
the acquired entity at the date of acquisition. Goodwill on acquisitions of subsidiaries is classified as an intangible asset. Goodwill
is tested annually for impairment and carried at cost less accumulated impairment losses. For the purpose of impairment testing,
goodwill is allocated to those cash-generating units or groups of cash-generating units that are expected to benefit from the
business combination in which the goodwill arose.
LICENSES
Fish-farming licenses acquired by the Group are measured on initial application at cost. Fish-farming licenses with an indefinite
useful life are not amortized but reviewed for impairment annually, or more frequently if there are indications that the carrying
value may have decreased.
The Group considers the following licenses to have indefinite useful lives:
• Licenses granted with an indefinite useful life, where the company has no other contractual restrictions relating to the use of the
license.
• Licenses granted with a finite useful life, but where the license holders can renew the licenses without incurring considerable
expenses.
Licenses with a finite useful life are amortized over their useful lives, and tested for impairment if there are indications that future
earnings do not justify the asset’s carrying value. Such licenses relate to water licenses for hatcheries and some specific seawater
licenses.
See the separate section below for more information concerning the fish farming licenses of our farming regions.
OTHER INTANGIBLE ASSETS
Acquired customer portfolios and computer software licenses are measured on initial recognition at cost and amortized over their
estimated useful lives. Customer portfolios are recognized in the statement of financial position at cost on the date of purchase.
Amortization is calculated using the straight-line method over the estimated useful life, as follows:
• Other intangible assets 3–10 years
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
CLASSIFICATION OF LICENSES
A significant judgment is whether a license should be amortized over its definite life, or whether it is deemed to have an indefinite
life and tested for impairment only. All licenses where the Group has no other contractual restrictions relating to the use of the
licenses have indefinite lives and, as such, are not amortized. Also, licenses granted with a finite useful life, but where the license
holder can renew the licenses without incurring considerable expenses are assessed as having indefinite lives. However, the
Group’s licenses in each country (see separate section in this Note for each license regime) are subject to certain requirements
and the Group risks penalties, sanctions or even license revocation if the Group fails to comply with license requirements or
related regulations. Local governments may, moreover, change the way licenses are renewed.
BRITISH COLUMBIA
In British Columbia (BC), licenses are renewed by the federal Department of Fisheries and Oceans (DFO) on a regular basis, with
different length. By 2025, the Canadian Federal Government aims to have created a responsible plan to transition into better
and more sustainable practices in British Columbia, in order to reduce interactions with wild salmon. In 2022, the Canadian
Department of Fisheries and Oceans renewed all farming licenses for two years to allow for the development of the plan. We
expect that the licenses will be renewed in 2024 and that they are incorporated into the transition plan. Grieg Seafood supports the
transition and continues to work collaboratively with our First Nation partners, government and local communities on innovation
and modernization towards a sensible transition plan.
In addition, farm tenures in BC are renewed by the province on a regular basis. From 2022, farm tenures that are not accepted
by the First Nation that is the rights-holder of the territory where the farm is located will not be renewed. All of Grieg Seafood's
current production is operating under agreements with First Nations. Grieg Seafood supports the implementation of the United
Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) into BC regulations, and we are engaging in the ongoing
process of reconciliation between the government, First Nations and industries.
The vast majority of Grieg Seafood’s production are under long-term agreements with the First Nations in those areas, and we
are pursuing agreements with more First Nations. The current agreements we have with First Nations last until 2037-2045. Even
though the agreements cannot be said to be everlasting, the Group has nevertheless classified the licenses as having indefinite
lives, based on the lack of sufficient relevant factors to change the principle at this point. Work on the transition plan has not
been completed, and based on the experience we have with the work so far, it is not considered reasonable to change estimates
regarding the economic life of the aquaculture licenses in BC. Given that it is desirable for both First Nations partners and the
Group to have close and good working relationships, and that they want the Group to operate in the area, the Group’s best estimate
is that the licenses will still be classified as having indefinite lives. This will be continuously assessed. If the situation changes and
the Group agrees not to use the option to extend the duration of the agreement, the estimate of the remaining amortization period
must be re-evaluated.
NEWFOUNDLAND
Grieg Seafood Newfoundland has 14 approved seawater farming licenses, as well as one freshwater license. The seawater licenses
are granted for terms of six years. To renew the licenses, licenses must follow the Provincial Aquaculture Policy and Procedures
Manual. As long as licenses follow and comply with the requirements, the license will be renewed. For this reason, the licenses are
classified as having indefinite lives and, as such, are not amortized.
Grieg Seafood Newfoundland is the single aquaculture operator/salmon farmer in the Placentia Bay area. The fair value related to
this (the excess value of book values as identified in the acquisition of Newfoundland in 2020) is amortized over the duration of the
agreement.
PART 03 - OUR FINANCIAL RESULTS
102
See Note 27 for information on assets pledged as security for financial liabilities.
Pursuant to the regulations, annual production is limited to 15 million fish.
INTANGIBLE ASSETS
2023 NOK 1 000
Book value at 01.01.
FISH FARMING
LICENSES –
INDEFINITE
LIVES
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS
GOODWILL
TOTAL
691 094
1 332 936
130 775
14 689
2 169 493
Currency translation differences
36 016
37 055
Additions
Amortization
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Accumulated impairments
Book value at 31.12.
INTANGIBLE ASSETS
2022 NOK 1 000
Book value at 01.01.
Reclassifications1
Additions
Amortization
Impairment2
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization
Accumulated impairments
Book value at 31.12.
—
—
—
—
727 111
1 369 991
816 714
1 505 283
—
-89 603
727 111
—
-135 292
7 461
—
-18 429
119 807
182 694
-62 888
—
357
1 592
-3 363
13 275
80 891
1 592
-21 792
2 230 184
63 957
2 568 649
-50 682
—
-113 570
-224 895
1 369 991
119 807
13 275
2 230 184
FISH FARMING
LICENSES –
INDEFINITE
LIVES
FISH FARMING
LICENSES –
FINITE LIVES
OTHER
INTANGIBLE
ASSETS
GOODWILL
660 071
1 522 227
14 092
-4 439
124 845
7 380
-11 103
—
36 828
1 483
-20 687
2 669
-5 603
50 560
-104 159
—
—
-135 693
—
-130 752
—
—
—
—
—
-89 603
691 094
691 094
1 332 936
130 775
14 689
2 169 493
780 697
1 463 687
173 274
-42 499
—
61 944
2 479 602
-47 255
-89 754
—
-220 355
1 332 936
130 775
14 689
2 169 493
Currency translation differences
31 023
See Note 27 for information on assets pledged as security for financial liabilities.
1The reclassification primarily concerns licenses in Newfoundland that have been considered as having finite economic life and subject to amortization. In addition, the reclassification
lite item relate to other intangible assets reclassified to indefinite licenses following formal approval of license application in Newfoundland.
2For information concerning the impairment of aquaculture licenses in 2022 see Note 15.
LICENSES
Seawater licenses
Each license for the farming of salmon in the sea is subject to a production limit in the form of “maximum allowed biomass” (MAB) on
both company and location/seawater site level. The system means the license holder can at no time have a standing biomass (number of
kg of live fish in seawater) that exceeds the company level MAB, in addition that no location can have a standing biomass that exceeds the
seawater site’s MAB. When a seawater site is approved, a maximum level of tonnes of fish is set, based on the location and environmental
conditions on the site. The normal size of a permit is 780 tonnes at the license level ex. the county of Troms and Finnmark, while the
normal size of a permit in Troms and Finnmark is 945 tonnes. While the extent of biomass a company can possess primarily depends on
the type and number of licenses, the limitation at site level is primarily dependent on the site’s environmental sustainability. See Section
15 of the Salmon Allocation Regulation (“Laksetildelingsforskriften”).
Norway also has green licenses, with stricter environmental criteria. The sea lice limit is half that of regular licenses, with stricter
criteria for escape prevention technologies and limits on the amount of medical treatment permitted per generation.
Hatchery licenses
Young salmon are defined as eggs, juveniles, parr or smolt to be released at another location, see Section 4(f) of the Salmon Allocation
Regulation. Such licenses are not limited and thus subject to continuous application for new licenses or changes to existing licenses.
TOTAL
2 233 218
78 627
—
10 048
-16 706
Broodstock and R&D licenses
These licenses are not limited in number. The purpose of broodstock licenses is to produce roe and milt from salmon with improved and/
or specific traits. Broodstock licenses include both a land and sea phase, i.e. broodstock and egg production are covered by the same
licensing process. The purpose of an R&D license is to encourage important research projects that can bring the Norwegian aquaculture
industry forward. Permits are means tested, meaning that the applicant must demonstrate a need for the production of eggs, specific
research projects or for educational purposes.
Educational licenses
Educational licenses in Norway are given to universities, colleges or high schools offering aquaculture-related courses of study. Salmon
farming companies can lease educational licenses from the educational institution. Part of the students’ training will then take place at
—
-135 693
these salmon farms.
Harvesting pen licenses
Licenses utilized for holding pens where live fish are kept prior to harvesting. These relate to specific locations.
Duration and renewal
The Ministry may in individual decisions or regulations specify further provisions on the content of aquaculture licenses, including
matters relating to scope and time limitations, see Section 5(2) of the Aquaculture Act. Nonetheless, the preparatory work for the
Aquaculture Act specifies that licenses are normally granted without a time limit.
Grieg Seafood’s general fish farming and hatchery licenses are not time-limited under current regulations. After the reform in 2009, a
number of licenses were time-limited, mainly for 15 years. As no government practices have been established relating to the renewal of
broodstock licenses, the current understanding is that they will be renewed upon application. Expiration of licenses allows for application
for renewal on demand. A license for harvesting pens is valid for ten years and must be renewed on expiration, provided that the license
is still connected to an approved harvesting facility.
NORWAY
The licensing regime for the production of salmon in Norway is enacted by the Norwegian Parliament through the Aquaculture Act. The
Disposal and withdrawal
Ministry of Trade, Industry and Fisheries grants permits for aquaculture (licenses). All aquaculture operations are subject to licensing,
All licenses can be transferred and mortgaged in accordance with Section 19 of the Aquaculture Act. Transfers and mortgages must be
and no one can produce salmon without permission from the authorities, see Section 4 of the Aquaculture Act.
recorded in a separate register (the Aquaculture Register). It is not permitted to rent out licenses or license capacity.
The aquaculture permit allows the production of salmon in limited geographic areas within the current determined limitations of the
Section 9 of the Aquaculture Act sets out the basis for withdrawal of an aquaculture license. This states that there must be significant
permit scope. The Aquaculture Act is administered centrally by the Ministry of Trade, Industry and Fisheries, with the Directorate
of Fisheries as the supervisory authority. Regionally, several industry authorities jointly manage full administrative and supervisory
responsibility within the regulating range of the Aquaculture Act. The county council is the regional administrative body, while the
Directorate of Fisheries serves as appellate body in locality and licensing matters.
breaches of the terms of an aquaculture license before it can be revoked.
PART 03 - OUR FINANCIAL RESULTS
103
TOTAL NUMBER
CAPACITY TONNES
35
30 853
CANADA - NEWFOUNDLAND
Grieg Seafood Newfoundland is the single aquaculture operator/salmon farmer in the Placentia Bay area. Newfoundland currently holds
14 seawater licenses and one freshwater license, with the aim to develop additional licenses as the project progresses.
8
3
3
3
2
2
56
1
57
7 743
2 340
2 340
4 045
1 106
1 560
49 987
780
50 767
The regulations for salmon farming in Placentia Bay are based on the number of fish in the sea at any one site. Per license there is a
maximum of one million fish in the sea in the first generation, and a maximum of two million fish in the second generation. In addition
there are regulations related to fallowing and adherence to certain environmental indicators.
To operate aquaculture sites in Newfoundland, the following approvals and licenses must be in place:
• Aquaculture License – issued by the Department of Fisheries Forestry and Agriculture
• Lease License for Occupancy – issued by Crown Lands division of Department of Fisheries Forestry and Agriculture
• Canadian Navigable Waters Act - issued by Transport Canada
• Water Use Approval – issued by Department of Environment, Climate Change, and Municipalities
Duration and renewal
Aquaculture licenses are granted for a six-year term. Each year, licensees must complete the validation process and abide by the
legislative references: Aquaculture Act and the Policy cross references as Aquaculture License Renewal AP 6, Annual reporting AP 7
and site utilization. For renewal, licensees are required to follow and comply with the requirements set out in AP 6 License Renewal.
Licensees must abide by license conditions, policies, and regulations at all times. Licenses may be suspended or cancelled if a breach
occurs, or they may not be renewed.
The timeline supports two production cycles and promotes longer-term investment and stability. Ensuring sites are being utilized and
developed by license holders in accordance with approved plans on file with the department falls under AP 8 Site Utilization. If sites are
not being utilized based on approved plans on file, they may not be renewed.
NORWAY
LICENSE CATEGORY AND TOTAL CAPACITY
Seawater licenses
Green licenses 1
R&D permit
Broodstock
Smolt
Harvesting pens
Education 2
Total licenses in production
Visitor center for fish farming 3
Total
1 Of which four green licenses are converted.
2 Finnmark and Rogaland lease education licenses from the Troms and Finnmark and Rogaland County Councils, respectively.
3 Finnmark has a license for a visitor center for fish farming. The center is under construction, and expected to be completed in 2025. The license cannot be utilized before the visitor
center is constructed.
CANADA - BRITISH COLUMBIA
Grieg Seafood BC Ltd (GSF BC) has farms on both the west and east coasts of Vancouver Island. To operate farms in British Columbia,
Canada, the following three licenses must be in place:
1.
2.
3.
Aquaculture license – issued by the Department of Fisheries and Oceans and the First Nations.
License of Occupation (Tenures) – issued by the Ministry of Forest, Lands and Natural Resource Operations.
Navigation Water Permit – issued by Transport Canada (Canadian public authority).
For restrictions regarding production quantity, see the table summarizing BC licenses below.
Duration and renewal
1.
2.
3.
Aquaculture license – duration of one year, renewal each year is a formality.
License of Occupation – duration of 2–20 years. Renewal is applied for on expiration.
Navigation Water Permit – duration of five years, but possible to apply for renewal.
CANADA - BC
TOTAL CAPACITY, WEST AND EAST OF VANCOUVER ISLAND
Total
- Of which relates to Sechelt
WEST
38 500
0
EAST
17 500
11 000
TOTAL
56 000
11 000
The capacity in BC is merely theoretical capacity, as all locations cannot be utilized simultaneously. BC also has a license for broodstock and smolt.
In 2022, the licenses for Sechelt farming area were written down. Grieg Seafood formally holds the licenses with DFO as at year-end 2023, however we have decommissioned our
farming operations at the sites.
PART 03 - OUR FINANCIAL RESULTS
104
NOTE 14 PROPERTY, PLANT AND EQUIPMENT INCL. RIGHT-OF-USE-ASSETS
ACCOUNTING POLICIES
Property, plant and equipment incl. right-of-use assets is stated at historical cost less depreciation and impairment losses.
Land and buildings mainly comprise freshwater facilities, harvesting plants and offices. Land is not depreciated. Other operating
assets are depreciated in accordance with the straight-line method so that the cost, or remeasured value, is written down to
residual value over its expected useful economic life as follows:
• Buildings/real estate 10–50 years
• Plants, barges, onshore power supply 5–30 years
• Nets/cages/moorings 5–25 years
• Other equipment 3–35 years
The assets’ useful lives and residual values are estimated at each balance sheet date and adjusted if necessary. In 2023 there
has not been any changes to the estimated useful life of the Group’s property, plant and equipment as a consequence of climate-
related risk.
TANGIBLE ASSETS
2023 NOK 1 000
Book value at 01.01.
Currency translation differences
Grants and other deductions to historic cost1
Additions2
Disposals
Depreciation
Impairment3
34 151
-25 847
209 058
-2 299
-45 705
136
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS
OTHER
EQUIPMENT
TOTAL
1 302 600
1 380 814
30 916
—
300 518
-5 857
603 938
16 575
—
230 046
-928
748 238
4 035 590
19 018
100 660
—
-25 847
788 893
1 528 515
-1 657
-10 741
-129 895
-120 458
-236 855
-532 911
—
—
—
136
TANGIBLE ASSETS
2022 NOK 1 000
Book value at 01.01.
Currency translation differences
Reclassification
Grants and other deductions to historic cost1
Additions
Disposals
Depreciation
Impairment
BUILDINGS/
PROPERTY
PROD. PLANTS AND
BARGES
NETS, CAGES AND
MOORINGS
OTHER
EQUIPMENT
TOTAL
1 169 285
1 065 018
529 502
638 824
3 402 629
28 997
-35 799
75 664
106 449
-269
-41 726
—
15 431
21 046
775
393 178
-5 889
8 944
-747
—
180 331
-3 160
17 390
15 501
70 762
—
24
76 464
256 922
936 879
-2 803
-12 121
-108 632
-106 867
-177 416
-434 641
-113
-4 065
603 938
-204
-4 382
748 238
4 035 590
Book value at 31.12.
1 302 600
1 380 814
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Accumulated impairments
Book value at 31.12.
Of which book value of non-depreciable property
RIGHT-OF-USE ASSETS
Book value at 31.12 of right-of-use assets (see
separate specification in Note 28)
1 611 916
-309 317
—
1 302 600
113 016
2 178 260
1 439 973
1 320 913
6 551 062
-797 339
-832 197
-572 483
-2 511 335
-107
1 380 814
—
-3 838
603 938
—
-192
-4 137
748 238
4 035 590
—
113 016
66 622
292 209
72 302
547 010
978 143
See Note 27 for information on assets pledged as security for financial liabilities.
See Note 28 for specification of the Group's right-of-use assets and further information on its leases
1Grants received and other deductions to historic cost, of which NOK -86 million relates to the reversal of Investment Tax Credit (ITC) carried over from 31 December 2021 in
Newfoundland (see Note 17) and NOK 9 million relates to government grants received in 2022 in Newfoundland.
2The Group leases vessels which are capitalized on the balance sheet as right-of-use assets. Some of these vessels are utilized in the development of the Newfoundland region.
3Impairment in 2022 is related to the Sechelt farming area in British Columbia, Canada. See Note 15 for more information.
Book value at 31.12.
1 472 094
1 576 496
729 174
1 317 638
5 095 401
ACCUMULATED VALUES
Acquisition cost
Accumulated depreciation
Accumulated impairments
Book value at 31.12.
Of which book value of non-depreciable property
RIGHT-OF-USE ASSETS
Book value at 31.12 of right-of-use assets (see
separate specification in Note 28)
1 820 899
-348 805
—
1 472 094
118 833
2 428 996
1 468 702
1 958 891
7 677 488
-852 391
-109
-735 600
-3 928
-641 057
-2 577 853
-197
-4 234
1 576 496
729 174
1 317 638
5 095 401
—
—
—
118 833
64 048
303 108
66 039
1 063 884
1 497 079
See Note 27 for information on assets pledged as security for financial liabilities.
See Note 28 for specification of the Group's right-of-use assets and further information on its leases.
1Grants and other deductions to historic cost, of which NOK 26 million relates to government grants received in 2023 in Newfoundland.
2The Group leases vessels which are capitalized on the balance sheet as right-of-use assets. Some of these vessels are utilized in the development of the Newfoundland region.
3Reversal of impairment in 2023 related to Sechelt farming area in British Columbia.
PART 03 - OUR FINANCIAL RESULTS
105
NOTE 15 IMPAIRMENT OF NON-FINANCIAL ASSETS
ACCOUNTING POLICIES
Assets with an indefinite useful life are not amortized but are tested annually for impairment. Assets that are subject to
amortization are reviewed for impairment whenever there are indications that future earnings do not justify the carrying value.
An impairment loss is recognized for the amount by which the asset’s carrying value exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
Non-financial assets, other than goodwill, that have suffered an impairment are reviewed for indicators of possible reversal of the
impairment at each reporting date.
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The Group tests whether goodwill and licenses have suffered any impairment on an annual basis. The recoverable amounts of
cash-generating units are generally determined on the basis of value-in-use calculations.
Licenses with finite useful lives are tested for impairment only if there are indications of a decline in value. The estimated value in
use (VIU) is used as a basis for calculating the recoverable amount, except for Grieg Newfoundland where the fair value less cost of
disposal (FVLCD) has been used as basis for recoverable amount.
These calculations require the use of estimates of future cash flows from the cash-generating unit, and the application of a
discount rate to calculate the present value of future cash flows. Expectations of future cash flows will vary over time. Changes
in market conditions and expected cash flows can result in losses due to future value decreases. The value of long-term growth
in demand, changes in market competition, the strength of the production stage in the value chain and thus also expectations of
the long-term profit margin are also of significance. The different parameters could variously affect the value of the licenses over
time. Any changes in these critical assumptions will result in related write-downs, or the reversal of write-downs of the value of
licenses.
IMPAIRMENT TESTING OF GOODWILL AND LICENSES
value in use for Newfoundland is in line with previous years, and is applied due to Newfoundland being a region under development.
During 2023, the second transfer of smolt to sea was successfully completed in Newfoundland. Additionally, we successfully commenced
harvesting of the first generation of fish from the region. The quality of the fish was excellent. The second generation is healthy with good
biological performance.
The Group has carried out climate-related scenario analysis, assessing the scenarios of 2C global warming and 4C global warming
(see Note 3). With 2C of global warming, Grieg Seafood’s business is well positioned to seize opportunities for sustainable growth. The
4C global warming scenario represents a risk for increased cost and lower earnings potential. In the impairment tests for year-end
2023, the scenarios have been considered. The uncertainty is high. The basis for the impairment test - the Group’s budget and business
plans - look five years ahead (the explicit period applied in the impairment tests are three years for Rogaland, Finnmark and BC, while
in Newfoundland 12 years is used such that production at full capacity is reflected in the terminal value). The explicit periods for the
impairment tests represent in general a short time interval when considering nature and climate related risks, as the risk primarily has
to be adjusted for in the terminal value. Additionally, time value of money through discounting also impact any quantifiable effect caused
by climate-related risks. At year-end 2023, the Group’s budget and business plans are aligned towards the 2C global warming scenario.
Overall, as disclosed in Note 3, Grieg Seafood expects the impacts of climate-related risks to be moderate in the short term, with no
quantifiable impact as per year-end 2023.
Assumptions used for estimating recoverable amount
Rogaland
Finnmark
BC Newfoundland
Budget period
3 years
3 years
3 years
12 years
Revenue growth - growth from base year to terminal year
24%
97%
67%
NA
Operational EBITDA margin (1)
33%-36%
32%-38%
19%-30%
0% - 34%
Operational EBITDA margin in terminal period
Harvest growth (tonnes) - growth from base year to terminal year (2)
Required rate of return before tax (3)
Required rate of return after tax (3)
Growth rate (4)
33%
21%
10.2%
8.0%
1%
38%
68%
10.2%
8.0%
1%
30%
41%
10.7%
7.8%
1%
34%
NA
13.4%
9.4%
1%
Other comments/explanations on assumptions applied in impairment testing are presented below.
1. Budgeted EBITDA-margin: The margin remains more stable for the Norwegian regions, and is assumed to increase for our overseas
regions during the budget period. Increase in harvest volume is assumed in all regions the next three years.
2. The growth rate for the harvest volume in the budget period (nominal growth rate) is measured against the 2023 volume. A
corresponding increase in output is assumed over time.
3. Weighted required return on capital employed before and after tax. Cash flow forecasts are thus estimated after tax. In the calculation,
the return on capital employed is also after tax.
No impairments of goodwill or licenses were recognized in 2023.
4. Weighted average growth rate used to extrapolate cash flows beyond the budget period. In the years after 2026, the annual
reinvestment is assumed to be equal to annual depreciation.
CASH-GENERATING UNIT NOK 1 000
Rogaland
Finnmark
British Columbia (BC)
Newfoundland
Total value
LOCATION
Norway
Norway
Canada
Canada
BOOK VALUE OF
RELATED
GOODWILL
BOOK VALUE
OF LICENSES
20 463
—
10 561
696 086
727 111
206 394
397 218
88 898
TOTAL
226 857
397 218
99 459
797 288
1 493 374
1 489 798
2 216 908
Impairment tests are initially based on the Group’s rolling five-year projections, which are also used in connection with the Group's
liquidity planning. Future price levels are estimated by using Fish Pool forward prices as a basis, adjusted for other considerations
such as quality reductions and shipping costs. The explicit period in the impairment test is three years for Rogaland, Finnmark and BC.
Cash flows beyond the three-year period are extrapolated using the estimated growth rates stated below. The estimated growth rate
corresponds to expected inflation. To test the Newfoundland operation for impairment, we estimated the FVLCD using a period of 12
years to reflect production at full capacity in the terminal year. Although production will increase at a slow pace in the first few years, it
will pick up speed once the facilities are completed and more smolt are transferred to the sea. The methodology for estimation of the
OPERATIONAL EBITDA-MARGIN IN THE BUDGET AND TERMINAL PERIOD
The budgeted Operational EBITDA-margin is based on past performance, expected cost of production and expected market
developments. An increase in gutted weight output is assumed towards 2026 (2035 for Grieg Seafood Newfoundland). The increased
harvest volume assumes an increase in utilization of existing production capacity and licenses, reflecting the Group's post-smolt strategy
and operational improvements. We expect further growth to come from better utilization of our seawater licenses by moving more growth
to land through our post-smolt program. We are piloting post-smolt in Rogaland, and will increase post-smolt capacity also in Finnmark.
Better utilization of our seawater licenses by improving biosecurity, fish health, welfare and survival rates, is also expected to secure on-
growth and harvest volumes. Flexibility is a requirement to achieve better utilization of our capacity, and we are continuously looking for
opportunities to secure access to new locations.
The assumptions in the terminal year are based on the budget, adjusted for inflation. The applied discount rates are after tax and reflect
specific risks relating to the relevant operating segments.
PART 03 - OUR FINANCIAL RESULTS
106
SENSITIVITY ANALYSIS
The assessment of fair value less cost of disposal and value-in-use is sensitive to changes in the assumptions made, the most important
The Group owns, through Grieg Seafood Rogaland AS, 33.33% of Tytlandsvik Aqua AS, together with Bremnes Seashore AS (33.33%) and
Vest Havbruk AS (33.33%). Tytlandsvik Aqua AS has an annual smolt production capacity of 6 000 tonnes, of which Grieg Seafood Rogaland
of which are the discount rate and Operational EBIT/kg. A sensitivity analysis has been carried out based on these assumptions for
AS is entitled to 50%.
all groups of cost-generating units. An isolated increase in the discount rate by 1.5% percentage points would result in an estimated
impairment for the Newfoundland operations of NOK 327 million, while a reduction of NOK 5 in Operational EBIT/kg for each year in
the entire budget period and terminal would entail an estimated impairment for Newfoundland of NOK 254 million. The other cash-
generating units (Rogaland, Finnmark and BC) are not sensitive to equivalent changes in the same assumptions.
The Group owns, through Grieg Seafood Rogaland AS, 44.44% of Årdal Aqua AS together with Vest Havbruk AS and Omfar AS. Grieg
Seafood Rogaland AS has provided an interest-bearing loan of NOK 6 million (NOK 6 million) to Årdal Aqua AS. The loan is classified as a
non-current receivable in the statement of financial position (see Note 17). The construction of Årdal Aqua AS, a land based facility with
the same design as Tytlandsvik Aqua AS, is progressing according to plan. Årdal Aqua AS is expected to produce at least 4 500 tonnes of
See Alternative Performance Measures for more information on Operational EBIT, Operational EBIT/kg and Operational EBITDA.
post-smolt annually from 2025.
WRITE-DOWN OF TANGIBLE AND INTANGIBLE NON-CURRENT ASSETS
There was no impairment of tangible and intangible non-current assets in 2023, only a reversal of impairment of NOK 0.1 million from
The Group owns, through Grieg Seafood Rogaland AS, 50.00% of NextSeafood AS. NextSeafood AS is owned together with
Havbrukskompaniet AS and aims to explore and realize the closed containment system known as FishGLOBE V6. FishGLOBE AS was
awarded two development licenses (1 560 tonnes MAB) in 2019. Grieg Seafood Rogaland AS has provided a long-term interest-free loan
2022 related to the discontinuing of farming operations in the shíshálh (Sechelt) area in BC. In 2022, Grieg Seafood recorded write-down
to FishGLOBE AS (an affiliated company of NextSeafood AS) of NOK 8.6 million (NOK 8.6 million). The loan is classified as a non-current
of tangible and intangible non-current assets totalling NOK 140 million related to reorganization of ownership structure of licenses in
receivable in the statement of financial position (see Note 17). Following the resource rent tax in Norway, Grieg Seafood has put the
Norway, and decommissioning of farming operations in BC.
development of FishGLOBE V6 on hold.
WRITE-DOWN ON TANGIBLE AND INTANGIBLE NON-CURRENT ASSETS NOK 1 000
Commercial aquaculture licenses in Rogaland, Norway
Commercial aquaculture licenses in British Columbia, Canada
Non-current tangible assets in British Columbia, Canada
Total write-down
- Of which total write-down of intangible non-current assets
Note
13
13
14
2023
—
—
-136
-136
—
2022
47 242
88 451
4 382
140 074
135 693
NOTE 16 INVESTMENT IN ASSOCIATED COMPANIES AND JOINT VENTURES
ACCOUNTING POLICIES
The Group’s investments in associated companies and joint ventures are recognized in the consolidated financial statement
according to the equity method.
Associates and joint ventures that are closely related to the Group's operations and included in the Group’s value chain are
classified on a separate line in the income statement and included in the subtotal of EBIT (Earnings before interests and taxes)
when the relevant associates operate in the same position in the value chain as the Group (see Note 5). All investments in
associates in 2023 and 2022 are closely related. The carrying value of the investment is classified on a single line item included in
the subtotal of non-current assets in the statement of financial position.
Set out below are the associated companies and joint ventures of the Group as at 31 December 2023. The entities listed below have share
capital consisting solely of ordinary shares, which are held directly by the Group. The country of incorporation or registration is also their
principal place of business, and the proportion of ownership interest is the same as the proportion of voting rights held. All investments in
associates and joint ventures have the same financial year as the Group.
The Group owns, through Grieg Seafood Finnmark AS, 50.00% of Nordnorsk Smolt AS together with SalMar ASA (50.00%). At 31
December 2023, Grieg Seafood Finnmark AS has an outstanding interest-bearing long-term loan to Nordnorsk Smolt AS of NOK 26.5
million (NOK 2.3 million at 31 December 2022). The loan is classified as a non-current receivable in the statement of financial position
(see Note 17). Nordnorsk Smolt AS is located in Troms and Finnmark county in Northern Norway, and has an annual production capacity
of 900 tonnes. There was no production in the facility during the first half of 2023 due to a redesign of the facility. Nordnorsk Smolt AS
commenced operations in the second half of 2023, and will be fully operational in 2024.
PART 03 - OUR FINANCIAL RESULTS
Specification of excess values included in the equity method accounting for investments in associates and joint ventures:
INVESTMENT IN ASSOCIATES
AND JOINT VENTURES
PLACE OF BUSINESS
/ COUNTRY OF
INCORPORATION
EQUITY
INTEREST
AT 31.12.2023
BOOK VALUE AT
01.01.2023
NOK 1 000
PROFIT/LOSS
2023
NOK 1 000
CHANGES IN THE
PERIOD, INCL.
REPAID CAPITAL
NOK 1 000
BOOK VALUE AT
31.12.2023
NOK 1 000
Nordnorsk Smolt AS
Troms and Finnmark
County, Norway
Tytlandsvik Aqua AS
Rogaland County, Norway
Årdal Aqua AS
Rogaland County, Norway
Nextseafood AS
Rogaland County, Norway
50.00%
33.33%
44.44%
50.00%
Total
39 053
55 951
114 047
7 574
216 624
-9 343
2 264
121
—
-6 957
—
—
—
—
—
29 710
58 215
114 168
7 574
209 667
Specification of excess values included in the equity method accounting for investments in associates and joint ventures:
AT 31.12.2023
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS*
Nextseafood AS
Total ownership
TIME OF
INVESTMENT
EQUITY INTEREST
EXCESS VALUE
HATCHERY
NOK 1 000
DEPRECIATION OF
EXCESS VALUE
NOK 1 000
BOOK VALUE OF
EXCESS VALUE
NOK 1 000
01.07.2019
01.06.2017
15.01.2020
31.01.2022
50.00%
33.33%
44.44%
50.00%
17 022
14 600
17 634
—
49 257
7 660
6 134
—
—
13 794
9 362
8 466
17 634
—
35 463
*Depreciation of the excess values in Årdal Aqua will start when the facility of Årdal Aqua is constructed and production has commenced.
The following table displays provisional financial information at 31 December 2023 (100%).
AT 31.12.2023 NOK 1 000
TOTAL ASSETS TOTAL LIABILITIES
TOTAL EQUITY OPERATING INCOME PRE-TAX PROFIT/LOSS
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
Nextseafood AS
125 099
746 748
707 436
15 149
88 016
596 389
490 213
—
39 084
150 359
217 223
15 149
25 752
298 620
2 006
—
-19 395
13 742
218
—
107
Specification of book value of the investments in associates and joint ventures according to the equity method:
NOTE 17 OTHER NON-CURRENT RECEIVABLES
INVESTMENT IN ASSOCIATES
AND JOINT VENTURES
PLACE OF BUSINESS
/ COUNTRY OF
INCORPORATION
EQUITY
INTEREST
AT 31.12.2022
BOOK VALUE AT
01.01.2022
NOK 1 000
PROFIT/LOSS
2022
NOK 1 000
CHANGES IN THE
PERIOD, REPAID
CAPITAL
NOK 1 000
BOOK VALUE AT
31.12.2022
NOK 1 000
Nordnorsk Smolt AS
Troms and Finnmark
County, Norway
Tytlandsvik Aqua AS
Rogaland County, Norway
Årdal Aqua AS
Rogaland County, Norway
NextSeafood AS
Total
Rogaland County,
Norway
50.00%
33.33%
44.44%
50.00%
47 710
48 087
8 878
—
104 675
-8 658
7 864
21 915
-26
21 096
—
—
39 053
55 951
83 254
114 047
7 600
90 854
7 574
216 624
Specification of excess values included in the equity method accounting for investments in associates and joint ventures:
OTHER NON-CURRENT RECEIVABLES NOK 1 000
Loan to associated company (interest- and non-interest bearing)
Investments in shares
Other non-current receivables
Total
NOTE
16
31
2023
41 129
402
806
2022
16 900
271
764
42 337
17 935
NOTE 18 INVENTORIES
AT 31.12.2022
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
NextSeafood AS
Total ownership
TIME OF
INVESTMENT
EQUITY INTEREST
EXCESS VALUE
HATCHERY
NOK 1 000
DEPRECIATION OF
EXCESS VALUE
NOK 1 000
BOOK VALUE OF
EXCESS VALUE
NOK 1 000
ACCOUNTING POLICIES
01.07.2019
01.06.2017
15.01.2020
31.01.2022
50.00%
33.33%
37.04%
50.00%
17 022
14 600
17 634
—
49 257
5 958
4 674
—
—
11 064
9 926
17 634
—
10 632
38 625
Inventories are stated at the lower of historical cost and net realizable value. Cost are determined by FIFO (first in, first out), with
the exceptions being weighted average cost for feed, and broodstock and roe. The net realizable value is the estimated sales price
less the estimated costs of completion and sale.
Biological assets are classified on a separate financial statement line item in the statement of financial position. See Note 19 for
The following table displays provisional financial information at 31 December 2022 (100%).
AT 31.12.2022 NOK 1 000
TOTAL ASSETS TOTAL LIABILITIES
TOTAL EQUITY OPERATING INCOME PRE-TAX PROFIT/LOSS
Nordnorsk Smolt AS
Tytlandsvik Aqua AS
Årdal Aqua AS
NextSeafood AS
91 295
623 770
220 614
15 149
36 227
485 682
3 665
—
55 068
138 088
216 949
15 149
195
322 999
—
—
-13 911
34 631
-1 449
-45
more information.
INVENTORIES NOK 1 000
Raw materials (feed) at cost price
Broodstock and roe
Other (goods in transit, frozen fish, supplementary products)
Total inventories
Write-down of inventories recognized in the statement of financial position at year-end
Write-down of inventories recognized in the income statement for the year*
*The impairments of inventories for the year where related to broodstock and roe.
See Note 27 for information on assets pledged as security for financial liabilities.
COST OF RAW MATERIALS AND CONSUMABLES PURCHASED NOK 1 000
Inventories at 01.01. (inverted number)
Raw materials and consumables purchased
Inventories at 31.12.
Total
2023
132 198
25 027
72 828
230 053
—
34 620
2023
-240 172
-2 737 825
230 053
2022
105 585
41 219
93 368
240 172
—
507
2022
-128 299
-2 345 528
240 172
-2 747 944
-2 233 655
The item raw materials and consumables mainly comprises feed, roe, recognition of extraordinary mortality and external purchases of fish by our sales organization.
PART 03 - OUR FINANCIAL RESULTS
108
NOTE 19 BIOLOGICAL ASSETS
ACCOUNTING POLICIES
Biological assets are recognized in the statement of financial position at their fair value less cost to sell. The fair value of biological
assets are measured according to level 3 of the fair value hierarchy, based on factors not drawn from observable market rates and
-prices.
The fish are divided into two main groups, depending on the stage of the life cycle. At the earliest stage of the life cycle, the fish are
kept on land in freshwater facilities, This group encompass roe, fry and smolt. When the fish are large enough to be transferred to
the sea, they are classified as biomass in sea.
In accordance with application of highest and best use when estimating the fair value of live fish, Grieg Seafood considers that the
fish have optimal harvest weight when they have a live round weight of 4.60 kg, which corresponds to 4.00 kg gutted weight. Fish
with a live round weight of 4.60 kg or more are classified as ready for harvest (mature fish), while fish with an weight less than 4.60
kg are classified as not ready for harvest (immature fish).
Fish onshore (smolt) are recognized at accumulated cost, which is considered the best estimate of fair value because of very little
biological transformation. This assessment must be seen in the light of the fact that smolt are currently transferred to the sea at
a stage when their weight is still relatively low. For fish in sea, the fair value is calculated by applying a cash-flow based present
value model. The measurement unit is the individual fish. However, for practical reasons, cash flows and estimates are carried out
per locality.
When estimating the fair value of the fish, a cash flow model is applied. The cash-flow based present value model for estimating
the fair value less cost to sell does not rely on historical and company specific factors. In a hypothetical market with perfect
competition, a hypothetical buyer of live fish would maximum be willing to pay the present value of the estimated future profit from
the sale of the fish when it is ready for harvest. The estimated future profit, considering all price adjustments and payable fees for
completion, constitutes the cash flow. No deductions are made for sales expenses, as these are not observable in the market. Such
expenses are also deemed immaterial.
Incoming cash flow is calculated as a function of estimated volume multiplied by estimated price. For fish not ready for harvest, a
deduction is made to cover estimated residual costs to grow the fish to harvestable weight. The cash flow is discounted monthly
by a discount rate. The discount rate comprises three main components: 1) the risk of incidents that influence cash flow, 2)
hypothetical license lease and 3) the time value of money. The sales price for fish in the sea is based on the forward price from Fish
Pool. Fish Pool is a marketplace for financial purchase and sale agreements for superior Norwegian Salmon size 3-6 kg head-on
gutted weight. The volume on Fish Pool is limited, but Grieg Seafood’s opinion is that the observable forward prices must be seen
as the best approach to a price for the sale of salmon as there are limited alternative observable prices in the market. Regarding
foreign countries, the most relevant price information available for the expected harvesting period is applied. For fish in the sea,
the forward price in Norway is adjusted for historical differences in achieved prices between Norway and Canada. The price/
net sales value is adjusted for quality differences (superior, ordinary and production grade), and for logistics expenses and sales
commissions. Estimated harvesting expenses are deducted.
OPENING TO CLOSING BALANCE RECONCILIATION OF THE CARRYING VALUE OF BIOLOGICAL
ASSETS
BIOLOGICAL ASSETS
Biological assets at 01.01.
Currency translation differences
Increase due to production
Decrease due to abnormal mortality/loss
Decrease due to sales
Fair value adjustment at 01.01.
Fair value adjustment at 31.12.
Biological assets at 31.12.
TONNES
NOK 1 000
2023
50 614
NA
94 144
-3 801
2022
2023
2022
59 121
4 045 800
3 449 412
NA
58 707
36 945
93 087
-3 408
5 563 616
4 348 288
-294 832
-224 924
-82 776
-98 186
-4 487 742
-3 743 033
NA
NA
NA
NA
-1 149 591
-970 480
1 329 761
1 149 591
58 181
50 614
5 065 718
4 045 800
See Note 27 for information on assets pledged as security for financial liabilities.
Tonnes is provided in live round weight.
SPECIFICATION OF THE CARRYING VALUE OF BIOLOGICAL ASSETS
NUMBER OF
FISH 1 000
BIOLOGICAL
ASSETS
TONNES
ACCRUED COST
OF PRODUCTION
NOK 1 000
FAIR VALUE
ADJUSTMENT
NOK 1 000
BOOK VALUE
NOK 1 000
27 227
28 854
3 262
59 343
17 680
26 562
1 648
45 890
541
39 784
17 857
58 181
547
41 614
8 453
50 614
265 069
2 497 747
973 142
—
265 069
943 998
385 763
3 441 745
1 358 905
3 735 957
1 329 761
5 065 718
181 569
2 370 985
343 655
—
181 569
934 708
214 883
3 305 693
558 537
2 896 209
1 149 591
4 045 800
STATUS OF BIOLOGICAL ASSETS
2023
Biological assets on land *
Immature fish at sea, round weight < 4.60 kg
Mature fish at sea, round weight > 4.60 kg
Total
2022
Biological assets on land *
Immature fish at sea, round weight < 4.60 kg
Mature fish at sea, round weight > 4.60 kg
Total
* Smolt production
ABNORMAL MORTALITY
ACCOUNTING POLICIES
Fish farming naturally comes with a certain level of loss of fish along the production cycle, and our budgets are typically produced
with an inherent assumption of a 0.5-1% monthly mortality. The losses associated with normal levels of survival are not directly
recognized in the income statement. In periods where specific abnormal incidents lead to reduced survival, we immediately
recognize write-downs of the biomass inventory to better reflect the actual biomass in the sea or on land. The write-down costs
When estimating the actual accumulated cost at the respective seawater facility, direct costs (fish feed and similar) are allocated to
are recorded in the income statement as they arise, included in the financial statement line item “raw materials and consumables
each group of fish transferred to the sea at the same location. Financial costs are not included in the costs of production.
used”.
The volume (biomass) is based on the actual number of individuals in the sea at the balance sheet date, adjusted to cover estimated
mortality up to harvest date and multiplied by the estimated harvest weight per individual at the time of harvest. The fair value
estimate for the fish in sea figure is adjusted for gutting waste, as the price is measured for gutted weight. Budgeted harvesting
and freight costs are applied. Foreign currency forward contracts associated with the date of harvesting are applied when
translating the price to CAD.
Cost related to abnormal mortality will be immediately recognized in profit or loss, and presented as "decrease due to abnormal
mortality/loss" in the table for opening-to-closing balance reconciliation as disclosed above. Normal mortality is classified as part
of the production cost. The classification of mortality only affects the note presentation, and not the fair value calculation.
Abnormal mortality in 2023 is related to winter ulcers, Spironucleus salmonicida (Spiro), sea lice treatment and gill disease.
PART 03 - OUR FINANCIAL RESULTS
109
ABNORMAL MORTALITY - WRITE-DOWN
2023
Immature fish in sea, round weight < 4.60 kg
Mature fish in sea, round weight > 4.60 kg
Total abnormal mortality in sea
Biological assets onshore
Total abnormal mortality
2022
Immature fish in sea, round weight < 4.60 kg
Mature fish in sea, round weight > 4.60 kg
Total abnormal mortality in sea
Biological assets onshore
Total abnormal mortality
NUMBER OF
FISH 1 000
BIOLOGICAL
ASSETS
TONNES
AVERAGE
SIZE KG
WRITE-DOWN
NOK 1 000
1 832
102
1 934
2 290
85
2 374
3 278
523
3 801
2 994
414
3 408
1.79
5.13
1.97
1.31
4.89
1.44
197 750
23 865
221 615
73 217
294 832
154 694
16 983
171 677
53 247
224 924
FAIR VALUE ESTIMATE AND RECOGNIZED FAIR VALUE ADJUSTMENT TO THE BIOLOGICAL ASSETS
ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
Discount rate
The sales revenue and remaining expenses are allocated to the same period in which the fish is harvested. The cash flows from
all localities where the Group has fish in the sea will then be distributed over the entire period it takes to farm the fish in the sea.
With the current size of the smolt released and the frequency of the smolt transfers, this period may be from 12 to 18 months. The
discount rate considers both risk adjustment (risk related to volume, cost and price), compensation for the value of the licenses
(hypothetical rent) and time value (tying up capital). The reason for differentiating the discount rate at the regional level is the
different prerequisites for biological production, which also requires a differentiation of the recognized synthetic license rent.
The risk adjustment shall reflect the price discount a hypothetical buyer would demand as compensation for the risk assumed by
investing in live fish rather than a different object. The longer it takes to reach harvest date, the higher the risk that something may
occur that will affect the cash flow. Three significant factors could have an impact on the cash flow: volume, costs and price. The
one thing all three factors have in common is that the sample space is asymmetrical.
Due to limited access to licenses for the farming of fish, the license value is currently considered to be very high. For a hypothetical
buyer of live fish to take over and continue to farm the fish, the buyer needs a license, locality and other permits required for such
production. However, in a hypothetical market for the purchase and sale of live fish, one must assume that this would be possible.
In that scenario, a hypothetical buyer would claim a significant discount to allocate a sufficient share of the returns to the buyer's
own licenses. It is difficult to create a model that would allow a hypothetical annual lease cost to be derived from prices for sold
licenses as the curve in the model would be based on projections of future profit performance in the industry.
A discount must be made for the time value of the tied-up capital linked to the share of the present value of the cash flow allocated
to the biomass. The buyer who is investing in live fish rather than some other type of object, would claim compensation for the
alternative cost. The production cycle for salmon in the sea currently takes up to 18 months. The cash flow will therefore extend
over a similar period. Assuming a constant sales price throughout the period, the cash flow would decrease for each month, as
costs are incurred to farm the fish to harvest weight. The cost increases for every month the fish are in the sea. As such, the effect
The fair value model assessed by the Group calculates the net present value of expected cash flow. Valuation is based on a variety
of deferred cash flow is lower than would be the case if the cash flow had been constant. This component is, however, deemed
of premises, many of which are non-observable. For mature fish (ready for harvesting) on the reporting date, uncertainty mainly
important due to the substantial value the stock of fish represents.
fish. The forward prices for superior Norwegian salmon weighing 3-6 kg gutted weight from Fish Pool are applied. For fish ready
Change in physical delivery contracts relating to fair value adjustment of biological assets2
involves realized prices and volume. For immature fish (not ready for harvesting), the level of uncertainty is generally higher. Price,
volume and discount rate are the main uncertainty factors. However, uncertainty is also related to biological transformation and
mortality prior to the harvest date for the fish.
Sales price
Salmon sales prices are volatile. The sales price is based on forward prices and/or the most relevant pricing information available
for the period in which the fish is expected to be mature (ready for harvesting). Changes in price assumptions have the greatest
impact on the fair-value estimate. The market price constitutes the basis for calculating fair value for both mature and immature
for harvest, the forward price for the following month is applied. For fish not ready for harvest, the forward price for the month
when the fish is expected to be harvested is applied.
Estimating remaining production cost
The planned point of harvesting is assumed to be when the fish reaches a live round weight of 4.60 kg, however, there may be
uncertainty regarding the estimated growth rate. For immature fish, the fair value is adjusted by the estimated remaining cost
necessary to grow the fish to optimal harvest weight. Forecast production costs include provisions for estimated feed prices, the
cost of lice treatments and other costs to prevent biological accidents. Here, estimations are affected by uncertainty regarding the
number of lice treatments to be carried out, the sea temperature and other conditions affecting growth and costs.
Volume
Estimated harvest volume is based on the estimated number of fish on the reporting date, less estimated future mortality
multiplied by optimal harvest weight (4.60 kg round weight). Actual harvest volume may differ from the estimated volume due to
changes in biological conditions or due to special events, such as a mass mortality. The estimated number of fish is based on the
number of smolt transferred to the sea, and mortality is a given percentage of the fish in the sea. The normal estimated harvest
weight is assessed to be the live round weight of fish that results in a gutted weight of 4.0 kg. If there are any specific conditions at
the reporting date resulting in the fish being harvested before they reach optimal weight, the estimated harvest weight is adjusted.
Mortality during the period from the reporting date to the date when the fish reach harvest weight is estimated to be 1% of the
number of opening balance of fish per month in the forecast period.
Biological assets are measured at fair value, unless the fair value cannot be measured reliably. The change in the fair value of
biological assets is recognized in the income statement as “fair value adjustment of biological assets”. The table below summarizes the
components of the fair value adjustment recognized in the income statement for the year.
RECOGNIZED FAIR VALUE ADJUSTMENT IN THE INCOME STATEMENT NOK 1 000
Change in fair value adjustment of biological assets1
Change in fair value of financial derivatives from salmon (Fish Pool contracts)3
Total recognition of fair value adjustment of biological assets
Recognized value adjustments of biological assets include:
1 Fair value adjustments of biological assets
2 Fair value (liability) change in loss-making contracts
3 Change in unrealized gains/losses from financial purchases/sales contracts (derivatives) from fish at Fish Pool
2023
156 557
-1 846
63 211
217 922
2022
129 331
-1 610
-44 309
83 412
Changes arising from physical delivery contracts are recognized as “fair value adjustment of biological assets”. The provision relates to
onerous contracts for delivery of salmon, where the expenses of fulfilling the contracts are higher than the economic yield the company
expects to gain by fulfilling the contracts. As biological assets are recognized at fair value, the fair value adjustments of the biological
assets will be included in the estimated expenses required to fulfil the contract. The contracts are calculated based on the same forward
prices used for the fair value calculation of biological assets. This implies that the Group may experience loss-making (onerous) contracts
according to IAS 37 even if the contract price for physical delivery contracts is higher than the actual production cost for the products. If
that occurs, a provision is made for the estimated negative value. The liability in the statement of financial position is recognized as other
current liabilities, see Note 29.
Changes in the value of salmon-related financial derivatives are recognized in the balance sheet under derivatives and other financial
instruments. Financial derivatives are calculated at market value. See Note 31 for further information.
PART 03 - OUR FINANCIAL RESULTS
110
BASIS FOR VALUES - WEIGHTED PRICE PER KG GWT
31.12.2023
31.12.2022
Source
NORWAY
95.84
84.06
BRITISH
COLUMBIA
NEWFOUNDLAND
14.28
12.83
12.79
11.66
Fish Pool
Fish Pool
Fish Pool
Forward prices from Fish Pool are adjusted for expected quality reductions and stated before logistics expenses.
The standard deduction for quality reduction is applied. Forward prices are weighted in relation to the intended harvesting period.
The price for British Columbia and Newfoundland is based on the forward price in Norway, adjusted for historical differences in price
levels between Norway and Canada. Forward exchange rates are used to translate prices into CAD in relation to the harvesting period.
The estimated future cash flow is discounted by a monthly rate, which is assessed individually for each region. The discount rate reflects
a combination of the cost of capital for the biological assets, risk adjustment (the risk related to volume, cost and price of the biological
assets) and a synthetic license rent. The discount rate is differentiated to take account of each region’s different prerequisites for
biological production, which also results in a differentiation of the recognized synthetic license rent. See the table below for the applied
discount rates per region.
DISCOUNT RATE PER REGION
Rogaland
Finnmark
British Columbia
Newfoundland
2023
5.0%
5.0%
3.5%
3.5%
2022
5.0%
5.0%
3.5%
3.5%
Grieg Seafood considers three components to be key parameters for valuation: price, estimated harvest biomass volume and the applied
monthly discount rate. The monthly discount rate is applied to expected future cash flows to account for risk, the time value of money and
the cost of contributory assets. The following table is a sensitivity analysis, showing the change in the fair value of the biological assets,
and hence the Group’s profit before tax, in the event of changes in these parameters. The estimate of fair value of the biomass will always
be based on uncertain assumptions, even though the Group has built up expertise in assessing these factors.
SENSITIVITY ANALYSIS OF BIOMASS - EFFECT ON PRE-TAX PROFIT NOK 1 000
Change in discount rate +1%
Change in discount rate -1%
Changes in sales price +1 NOK/kg
Changes in sales price -1 NOK/kg
Changes in sales price +5 NOK/kg
Changes in sales price -5 NOK/kg
Changes in biomass volume +1% kg
Changes in biomass volume -1% kg
2023
2022
-215 696
-175 527
264 132
82 860
-70 722
409 732
207 074
69 555
-68 073
357 629
-359 003
-325 903
62 821
-50 824
54 202
-53 427
PART 03 - OUR FINANCIAL RESULTS
111
NOTE 20 TRADE RECEIVABLES
ACCOUNTING POLICIES
Trade receivables arising from the trading of goods or services within the ordinary operating cycle and under normal terms of
payment are initially recognized at nominal value.
The Group is engaged in factoring agreements that cover financing of outstanding receivables for the sales organization in Norway.
Generally, a financial asset is derecognized from the statement of financial position when either the rights to receive cash flows
from the asset have expired, or the Group has transferred its right to receive cash flows from the asset, preconditioned that the
Group has transferred substantially all risks and rewards, or control, of the financial asset to a third party.
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit
or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. Losses on receivables
are classified as other operating expenses in the income statement.
For trade receivables, the Group applies a simplified approach in calculating expected credit loss (ECL). In the Group's expected
credit ECL model, customers are categorized as high or low risk, depending on their country of origin, and as credit insured
or unsecured. The group of unsecured receivables also consists of some receivables that have other types of security. The
risk evaluation is based on our own experience and input from credit insurance companies. A loss allowance is calculated as a
percentage of the aging distribution (days past due). The Group also makes manual accruals if significant information implies that
NOK 1 000
GROSS
AMOUNT
EXPOSED
AMOUNT
NOT YET
DUE
OVERDUE
0-30 days
OVERDUE
31-60
days
OVERDUE
61-90
days
OVERDUE
> 90 days
OVERDUE
> 1 year
Total
AGING PROFILE OF TRADE RECEIVABLES (TR) 31.12.2023
Regular/normal
risk countries
High risk
countries
Total
TR Credit
insured
520 137
27 925
336 869
169 204
12 480
TR Unsecured
82 117
81 261
21 591
17 934
21 370
TR Credit
insured
TR Unsecured
975
—
—
—
975
—
—
—
—
—
293
412
—
—
1 291
5 364
—
520 137
15 445
82 117
—
—
—
—
975
—
603 229
109 187
359 434
187 139
33 850
705
6 655
15 445
603 229
LOSS ALLOWANCE 31.12.2023
TR Credit
insured
TR Unsecured
TR Credit
insured
TR Unsecured
Regular/normal
risk countries
High risk
countries
Total
NOK 1 000
—
—
—
—
—
27 925
81 261
—
—
132
244
2
1
—
7
—
—
109 187
135
251
94
28
—
—
122
5
202
—
—
3
—
478
4 389
14 365
18 993
—
—
—
—
1
—
207
4 392
14 365
19 472
GROSS
AMOUNT
EXPOSED
AMOUNT
NOT YET
DUE
OVERDUE
0-30 days
OVERDUE
31-60
days
OVERDUE
61-90
days
OVERDUE
> 90 days
OVERDUE
> 1 year
Total
there is a higher risk of losses. Around 5% credit risk also remains for the factored trade receivables. The aging analysis given
AGING PROFILE OF TRADE RECEIVABLES (TR) 31.12.2022
below is therefore based on the total receivables rather than total receivables less the factored receivables. For more information
about credit risk, refer to Note 4.
TRADE RECEIVABLES NOK 1 000
Gross amount of trade receivables
Trade receivables deducted*
Loss allowance
Trade receivables at 31.12.
*Trade receivables bought by the factoring company.
See Note 4 for a specification of the carrying value per currency.
See Note 27 for information on assets pledged as security for financial liabilities.
RECOGNIZED LOSSES ON TRADE RECEIVABLES
RECOGNIZED LOSSES NOK 1 000
Change in loss allowance
Confirmed losses in the year
Total recognized losses on receivables
2023
603 229
-256 597
-19 472
327 160
2022
690 226
-416 053
-15 036
259 137
2023
4 436
—
4 436
2022
71
33
104
Regular/normal
risk countries
High risk
countries
Total
TR Credit
insured
615 863
—
486 463
121 035
6 332
TR Unsecured
59 939
61 444
33 057
1 550
10 898
TR Credit
insured
11 583
—
TR Unsecured
2 841
2 839
5 399
2 839
5 732
2
474
—
381
601
—
—
1 616
36
615 863
60
13 773
59 939
-22
—
—
—
11 583
2 841
690 226
64 283
527 757
128 319
17 704
982
1 655
13 809
690 226
LOSS ALLOWANCE 31.12.2022
TR Credit
insured
TR Unsecured
TR Credit
insured
TR Unsecured
Regular/normal
risk countries
High risk
countries
Total
—
—
—
—
—
—
61 444
—
2 839
64 283
271
8
3
2
283
8
—
16
—
25
316
—
12
—
328
79
—
—
—
79
512
—
—
—
36
1 223
13 773
13 780
—
—
31
2
512
13 809
15 036
PART 03 - OUR FINANCIAL RESULTS
112
NOTE 21 OTHER CURRENT RECEIVABLES
NOTE 24 SHARE CAPITAL AND SHAREHOLDER INFORMATION
OTHER CURRENT RECEIVABLES NOK 1 000
VAT receivable
Prepaid expenses
Other current receivables
Total
NOTE 22 INVESTMENT IN MONEY MARKET FUNDS
2023
80 968
58 656
31 625
2022
87 431
44 113
25 515
As at 31 December 2023, the company had 113 447 042 shares with a nominal value of NOK 4 per share. All shares issued by the company
are fully paid-up. There is one class of shares and all shares confer the same rights.
SHARE CAPITAL AND NUMBER OF SHARES
31.12.2023
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
171 249
157 060
Total
Holdings of treasury shares
Total excl treasury shares
4.00
4.00
4.00
453 788
-5 255
448 533
113 447 042
1 313 654
112 133 388
Treasury shares
Grieg Seafood ASA hold treasury shares in connection to its share saving program for employees. The latest sale of treasury shares
from the company to employees was in December 2023, as 107 473 treasury shares was sold through the share saving program. As at
31 December 2023, the company has 1 313 654 treasury shares.
In 2022, 96 150 shares was sold to employees through the share savings program at an average price of NOK 71.10. In December 2022,
Grieg Seafood purchased 385 000 shares at a weighted average price of NOK 77.76 per share of which 314 980 has been settled within
year-end 2022 and the remainder was settled in January 2023.
INVESTMENT IN MONEY MARKET FUNDS NOK 1 000
NOTE
2023
Investment in money market funds
Unrealized gain/loss
Total investment in money market funds
Realized fair value gains (losses) recognized in the income statement
Unrealized fair value gains (losses) recognized in the income statement
11
11
—
—
—
41 461
-12 624
2022
1 000 224
12 624
1 012 848
—
12 624
In 2022, the Group temporarily placed surplus liquidity funds in money market funds. The entire investment has been exited as per year-
end 2023. The Group did not invest directly in bonds or securities, but through units in established money market funds. All three funds
held in the investment portfolio as per 31 December 2022 were money market funds that invested in bonds and securities with short time
to maturity in the Norwegian market.
NOTE 23 CASH AND CASH EQUIVALENTS
ACCOUNTING POLICIES
Cash and cash equivalents include cash in hand, bank deposits and other short-term highly liquid investments with original
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
OM Holding AS
Folketrygdfondet
Ystholmen Felles AS
Clearstream Banking S.A. (Nominee)
State Street Bank and Trust Comp (Nominee)
State Street Bank and Trust Comp (Nominee)
Grieg Seafood ASA
BNP Paribas (Nominee)
maturities of three months or less. The overdraft facility is included in current borrowings in the statement of financial position.
JPMorgan Chase Bank, N.A., London (Nominee)
CASH AND CASH EQUIVALENTS NOK 1 000
Restricted deposits incl. employee tax deductions
Other cash and bank deposits
Total
2023
1 000
215 318
216 318
2022
1 000
641 719
642 719
The Group has two multi-currency group account scheme (cash pool agreement), in which Grieg Seafood ASA, the parent company, is the
legal account holder. One of the cash-pool agreements do have a multi-currency overdraft facility of NOK 200 million, which is utilized
with NOK 63 million at year-end 2023. See Note 27 for more information. The subsidiaries that are part of the agreement can utilize the
group cash pool arrangement provided that the arrangement without overdraft cannot be net negative, and that the arrangement with
overdraft facility can not exceed negative NOK 200 million. Not all subsidiaries are part of the cash pool arrangement. The subsidiaries
participating in the group account scheme are jointly and severally liable for the entire amount of the commitment under the scheme.
Cash and cash equivalents include the currency exposure in the group account scheme. At 31 December 2023, the net amount of bank
deposits in the group account scheme amounted to NOK 26 million (2022: NOK 524 million). At the same time, unutilized overdraft facility
was NOK 137 million (NOK 200 million), in addition to unutilized revolving credit facility of NOK 750 million (NOK 1 500 million).
See Note 4 for a specification of the carrying value per currency. See Note 27 for information on the Group’s available credit facilities.
PART 03 - OUR FINANCIAL RESULTS
Sparebank 1 Markets AS
Frøy Kapital AS
J.P. Morgan SE (Nominee)
State Street Bank and Trust Comp (Nominee)
Kvasshøgdi AS
Bank Pictet & Cie (Europe) AG (Nominee)
Six Sis AG (Nominee)
BNP Paribas (Nominee)
Skandinaviska Enskilda Banken AB (Nominee)
State Street Bank and Trust Comp (Nominee)
Total 20 largest shareholders
Total others
Total number of shares
NO. OF SHARES
SHAREHOLDING
31.12.2023
31.12.2023
56 914 355
50.17%
5 160 982
2 419 585
1 923 197
1 615 271
1 512 715
1 435 586
1 313 654
1 192 532
1 171 727
1 159 872
1 116 323
1 105 349
1 078 185
996 772
921 918
853 102
842 579
800 350
753 837
4.55%
2.13%
1.70%
1.42%
1.33%
1.27%
1.16%
1.05%
1.03%
1.02%
0.98%
0.97%
0.95%
0.88%
0.81%
0.75%
0.74%
0.71%
0.66%
84 287 891
29 159 151
113 447 042
74.30%
25.70%
100.00%
113
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
OM Holding AS
Folketrygdfondet
Ystholmen Felles AS
State Street Bank and Trust Comp (Nominee)
State Street Bank and Trust Comp (Nominee)
Morgan Stanley & Co. Int. Plc. (Nominee)
Clearstream Banking S.A. (Nominee)
Grieg Seafood ASA
JPMorgan Chase Bank, N.A., London (Nominee)
Gåsø Næringsutvikling AS
Kvasshøgdi AS
Ferd AS
State Street Bank and Trust Comp (Nominee)
DZ Privatbank S.A. (Nominee)
J.P. Morgan SE (Nominee)
Danske Invest Norge Vekst
Six Sis AG (Nominee)
J.P. Morgan SE (Nominee)
DNB Bank ASA (Broker)
Total 20 largest shareholders
Other shareholders
Total shares
NO. OF SHARES
SHAREHOLDING
31.12.2022
31.12.2022
56 914 355
50.17%
SHARES CONTROLLED DIRECTLY AND INDIRECTLY BY THE BOARD OF
DIRECTORS AND GROUP MANAGEMENT
31.12.2023
31.12.2023
31.12.2022
31.12.2022
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
5 110 982
2 939 985
1 923 197
1 717 439
1 692 877
1 470 346
1 376 622
1 351 811
1 136 470
1 116 323
996 772
924 407
724 407
698 518
687 236
540 000
534 229
526 442
482 561
4.51%
2.59%
1.70%
1.51%
1.49%
1.30%
1.21%
1.19%
1.00%
0.98%
0.88%
0.81%
0.64%
0.62%
0.61%
0.48%
0.47%
0.46%
0.43%
82 864 979
30 582 063
73.04%
26.96%
113 447 042
100.00%
BOARD OF DIRECTORS
Per Grieg *
Tore Holand **
Marianne Ribe
Katrine Trovik
Nicolai Hafeld Grieg *
Ragnhild Janbu Fresvik (board member from 9 June 2022)
GROUP MANAGEMENT
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Alexander Knudsen (Chief Operating Officer Farming Norway)
Grant Cumming (Chief Operating Officer Farming Canada)***
Erik Holvik (Chief Commercial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen (Chief Human Resource Officer)
Nina Stangeland (Chief Strategy Officer)***
Kristina Furnes (Chief Communications Officer)
2 877 206
3 160
—
—
2 117 289
—
44 372
28 015
24 272
9 857
11 135
25 614
15 833
—
5 167
2.54%
0.00%
—%
—%
1.87%
—%
0.04%
0.02%
0.02%
0.01%
0.01%
0.02%
0.01%
—%
0.00%
2 877 206
2 000
—
—
2 117 289
—
40 513
25 556
23 513
NA
8 831
24 855
15 074
NA
4 711
2.54%
0.00%
—%
—%
1.87%
—%
0.04%
0.02%
0.02%
NA
0.01%
0.02%
0.01%
NA
0.00%
*Per Grieg and Nicolai Hafeld Grieg both own indirectly in Grieg Seafood ASA through their indirect ownership in Grieg Maturitas II AS (see Note 1). Grieg Maturitas II AS owns 100%
of Grieg Aqua AS, which is the largest shareholder in Grieg Seafood ASA representing 50.17% of the shares. Additionally, both Per Grieg and Nicolai Hafeld Grieg is represented
in the Board of Directors of Grieg Maturitas II AS. Together, Per Grieg and Nicolai Hafeld Grieg therefore represents, through their indirect ownership and board representation in
Grieg Maturitas II AS, 50.17% of the shares in Grieg Seafood ASA through Grieg Aqua AS. Additionally, Per Grieg has further ownership interests in Grieg Seafood ASA through shares
invested privately and through Kvasshøgdi AS, bringing the total percentage of shares in Grieg Seafood ASA represented by Per Grieg to 51.06%.
**Tore Holand owns shares in Grieg Seafood ASA through shares invested in Skippergata 24 AS as well as shares invested privately.
***Grant Cumming and Nina Stangeland were appointed to Group Management in 2023.
PART 03 - OUR FINANCIAL RESULTS
114
NOTE 25 CONTINGENT CONSIDERATION, OTHER EQUITY AND RETAINED EARNINGS
RETAINED EARNINGS
CONTINGENT CONSIDERATION
ACCOUNTING POLICIES
Equity-classified contingent consideration is measured initially at fair value on the acquisition date and is not remeasured
subsequent to initial recognition. Settlement of the equity-classified contingent consideration is accounted for within equity.
On 15 April 2020, Grieg Seafood ASA completed the acquisition of Grieg Seafood Newfoundland AS, which is the holding company for
the farming operations in the Newfoundland region. On the date the acquisition was completed, 99% of the shares in Grieg Seafood
Newfoundland AS were transferred, while the remaining 1% is subject to a put/call option accounted for and included in the contingent
consideration (classified as equity) of the acquisition.
Through the acquisition, a contingent consideration of NOK 702 million was recognized. Depending on the planned production volume
within the first 10 years following the transaction, additional payments may be triggered. The additional amount becomes unconditional
when Newfoundland has reached an annual harvest volume of 15 000 tonnes, and the amount increases with planned volume until an
annual harvest volume of 33 000 tonnes. The amount due is NOK 43 per kg for volumes between 15 000 and 20 000 tonnes, and NOK 55
per kg for volumes between 20 000 and 33 000 tonnes, with a 4% per annum inflation adjustment from the calendar year 2023.
SPECIFICATION OF RETAINED EQUITY NOK 1 000
Book value at 01.01.2022
Changes in 2022
Book value at 31.12.2022
Changes in 2023
Book value at 31.12.2023
EFFECT OF
SHARE-BASED
REMUNERATION
PURCHASE/
SALES OF
TREASURY
SHARES *
ACCUMULATED
INCOME LESS
ACCUMULATED
DIVIDEND
TOTAL
1 094
—
1 094
—
1 094
-2 020
4 344 929
4 344 002
-22 229
-24 249
816 839
794 610
5 161 767
5 138 612
6 912
55 631
62 543
-17 337
5 217 398
5 201 155
* The amount classified under "purchase of treasury shares" equals the cost price in excess of nominal value.
NOTE 26 EARNINGS PER SHARE AND DIVIDEND PER SHARE
ACCOUNTING POLICIES
The contingent consideration is classified as equity. It is in Grieg Seafood’s sole discretion to decide when to make the expansion
Earnings per share are calculated by allocating the profit for the year to the company’s shareholders based on a weighted average
investments and increase production.
OTHER EQUITY
SPECIFICATION OF ACCUMULATED OTHER COMPREHENSIVE INCOME
NOK 1 000
Book value at 01.01.2022
Changes in 2022
Book value at 31.12.2022
Changes in 2023
Book value at 31.12.2023
CHANGES IN
FAIR VALUE
OF EQUITY
INSTRUMENTS
CURRENCY
EFFECT ON
LOANS TO
SUBSIDIARIES
CURRENCY
EFFECT ON
INVESTMENT IN
SUBSIDIARIES
-37
—
-37
—
-37
-29 010
19 338
-9 672
22 451
12 780
97 553
109 336
206 888
98 316
305 204
TOTAL
68 506
128 674
197 180
120 767
317 947
The holding companies in the Group extend current and non-current loans to the subsidiaries, denominated in these companies’
functional currencies. The non-current loans, with some exceptions, are considered to be equity in these companies, as there is no
planned repayment of the principal amount outstanding. The currency effect of loans is recognized under "currency effect on loans to
subsidiaries" in the Other Comprehensive Income (OCI) statement. The numerical effects for 2023 and 2022 are presented in the table
below.
CURRENCY EFFECTS ON LOANS TO SUBSIDIARIES NOK 1 000
Currency effect
Tax effect (22%)
Net effect recognized in equity through OCI
2023
28 784
-6 332
22 451
2022
24 792
-5 454
19 338
PART 03 - OUR FINANCIAL RESULTS
of the number of issued ordinary shares during the year. Diluted earnings per share are calculated by adjusting the weighted
average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.
CALCULATION OF EARNINGS PER SHARE
Profit / loss after tax (majority share) NOK 1 000
SPECIFICATION NUMBER OF SHARES AT 31.12:
Number of shares
Number of treasury shares
Number of outstanding shares
Weighted average number of outstanding shares
Diluted average number of outstanding shares
Earnings per share (NOK)
Diluted earnings per share (NOK)
ACCOUNTING POLICIES
2023
2022
559 750
1 153 779
113 447 042
113 447 042
1 313 654
1 351 811
112 133 388
112 095 231
112 034 001
112 309 715
112 034 001
112 309 715
5.0
5.0
10.3
10.3
Dividends payable to the company’s shareholders are recognized as a liability in the Group’s financial statements when the
dividends are approved by the annual general meeting of Grieg Seafood ASA.
DIVIDENDS
Proposed dividend per share (NOK)*
Distributed dividend to owners during the year per share (NOK)
*Proposed dividend per share (NOK) by the Board of Directors. Per the date of this Annual Report - not yet approved by the Annual General Meeting.
2023
1.75
4.50
2022
4.50
3.00
115
NOTE 27 BORROWINGS
ACCOUNTING POLICIES
CURRENT LIABILITIES (INTEREST-BEARING) NOK 1 000
2023
2022
CURRENT BORROWINGS
Current portion of non-current syndicated term-loan
Overdraft facilities*
Current portion of other non-current liabilities
132 753
128 211
63 113
12 469
—
13 757
208 335
141 968
Borrowings are initially recognized at fair value when the funds are received, net of transaction costs incurred. Borrowings
Current portion of borrowings according to the statement of financial position
are subsequently stated at amortized cost applying the effective interest method. Any difference between the proceeds (net of
transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings. Borrowings
are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12
months after the reporting date.
Grieg Seafood ASA has a syndicated, secured loan provided by DNB and Nordea. The syndicated financing consists of an aggregate
of NOK 3 200 million in five-year senior secured sustainability-linked loans and credit facilities with maturity date in 2027. The debt
structure comprises a NOK 750 million term loan (outstanding NOK 656 million), an EUR 75 million term loan (outstanding EUR 66
million), a NOK 1 500 million revolving credit facility and a NOK 200 million overdraft facility. As at the end of 2023, the Group has NOK
887 million (NOK 1 700 million) available on the revolving credit facility and overdraft facility. The revolving credit facilities are non-
current and may be redrawn. Of the syndicated debt, NOK 133 million is installments due the next 12 months from the reporting date. The
financing carries floating interest rates, calculated as the relevant three month IBOR plus the applicable margin per interest period. The
financial covenant of the facility is a minimum equity ratio requirement of 31%, measured excl. the effect of IFRS 16.
In addition to the senior secured facility, the Group also has a green bond (GSF01 G, listed at Euronext), which matures in June 2025. The
outstanding amount of the bond loan was NOK 1 393 million at the end of 2023. The total bond issue in 2020 was NOK 1 500 million, and
since the bond issue, Grieg Seafood has repurchased NOK 107 million. The bond carries a coupon rate of three months NIBOR + 3.4% p.a.
The bond's financial covenant is an equity ratio requirement of minimum 30%, measured consistent with the Group’s equity ratio financial
covenants as defined in its syndicated loan agreement with secured lenders.
Grieg Seafood ASA was in compliance with its financial covenant at 31 December 2023. At 31 December 2023, the Group had an equity
ratio of 49% (2022: 50%) while the equity ratio according to financial covenant was 53%, compared to 52% at 31 December 2022.
In addition to bank- and bond loan, the Group's financing consists of lease agreements with credit institutions, in addition to the effect of
IFRS 16 by capitalizing leases on the balance sheet (operational leases according to IFRS in force prior to 1 January 2019).
NON-CURRENT LIABILITIES NOK 1 000
NON-CURRENT BORROWINGS
Green bond loan
Non-current syndicated term-loan
Non-current syndicated revolving credit facility
Other non-current liabilities
Non-current interest-bearing borrowings
Amortization effect of loans
Non-current borrowings according to the statement of financial position
NON-CURRENT LEASE LIABILITIES
2023
2022
1 392 500
1 423 500
1 261 155
1 346 218
750 000
105 067
—
94 144
3 508 722
2 863 862
-16 742
-25 053
3 491 980
2 838 809
Non-current lease liabilities according to the statement of financial position
1 111 049
653 650
TOTAL NON-CURRENT BORROWINGS INCL AMORTIZED LOAN COSTS AND LEASE LIABILITIES
Total non-current liabilities
4 603 028
3 492 459
CURRENT LEASE LIABILITIES
Current portion of leasing liabilities according to the statement of financial position
299 626
226 910
TOTAL CURRENT BORROWINGS AND LEASE LIABILITIES
Total current liabilities
507 960
368 878
*The Group has two multicurrency cash pool schemes, held at two different banks. One of the cash pool schemes has a multi-currency overdraft facility of NOK 200 million. As at year-
end 31.12.2023, the cash pool scheme with the overdraft engagement had a net negative cash position, classified as overdraft facility at year-end. For more information on the Group's
cash and cash equivalents, see Note 4 and 23.
NET INTEREST-BEARING LIABILITIES NOK 1 000
Total non-current interest-bearing liabilities
Total current interest-bearing liabilities
Gross interest-bearing liabilities
Loans to associated companies
Investment in money market fund
Cash and cash equivalents
Net interest-bearing liabilities
Lease liabilities for contracts classified as operating lease for the lessor
Net interest-bearing liabilities ex. the effect of IFRS 16
2023
2022
4 619 770
3 517 512
507 960
368 878
5 127 730
3 886 390
-32 529
-8 300
—
-1 012 848
-216 318
-642 719
4 878 884
2 222 522
-1 005 714
-483 946
3 873 170
1 738 576
Loans to associated companies, investment in money market funds, cash and cash equivalents and lease liabilities for contracts classified as operating lease for the lessor are
presented by their inverted figure in the table above.
Lease liabilities for contracts classified as operating lease for the lessor, corresponds to leases under the previous IFRS accounting
standard IAS 17’ definition of operational leases. These lease liabilities (NOK 1 006 million in 2023 and NOK 484 million in 2022), also
referred to as “the effect of IFRS 16”, are not included in the financial covenant’s definition of net interest-bearing liabilities.
The Group monitors leverage by assessing both the net interest-bearing liabilities including the effect of IFRS 16, totalling NOK 4 879
million (NOK 2 223 million) and net interest-bearing liabilities ex. the effect of IFRS 16, totalling NOK 3 873 million (NOK 1 739 million).
In this Note, the lease liabilities are reported in aggregate. See Note 28 for a specification of the Group’s lease liabilities, separated into
lease liabilities for contracts classified as financial lease for the lessor (which corresponds to leases under the previous IFRS accounting
standard IAS 17’ definition of financial leases) and lease liabilities for contracts classified as operating lease for the lessor (which
corresponds to leases under the previous IFRS accounting standard IAS 17’ definition of operational leases).
MATURITY PROFILE INTEREST-BEARING LIABILITIES NOK 1
000
2024
2025
2026
2027
2028
LATER
TOTAL
31.12.2023
Green bond loan
Syndicated term-loan
Syndicated revolving credit facility
Overdraft facility
Lease liabilities (book values)*
Other non-current liabilities**
— 1 392 500
—
—
132 753
132 753
132 753
995 648
—
63 113
—
—
—
—
750 000
—
—
—
—
—
— 1 392 500
— 1 393 908
—
—
750 000
63 113
299 626
249 578
236 302
206 866
133 219
285 083
1 410 674
12 468
9 355
12 151
12 223
12 543
58 796
117 535
Total
507 960
1 784 186
381 206
1 964 738
145 762
343 879
5 127 730
*See Note 4 for a specification of the nominal payments for the lease component of the contractual liability
**NOK 117.6 million attributable to various loans provided by government agencies in Canada concerning the development of the Newfoundland region. These loans are recognized at
present value, with a calculated interest charged to the income statement until maturity.
PART 03 - OUR FINANCIAL RESULTS
116
MATURITY PROFILE INTEREST-BEARING LIABILITIES NOK 1
000
2023
2024
2025
2026
2027
LATER
TOTAL
Average interest rate (NOK)
Average interest rate (EUR)
31.12.2022
AVERAGE INTEREST RATE ON BANK- AND BOND LOAN
2023
6.62%
4.15%
2022
4.61%
1.77%
Green bond loan
Syndicated term-loan
Lease liabilities (book values)*
Other non-current liabilities**
Total
—
— 1 423 500
—
—
— 1 423 500
128 211
128 211
128 211
128 211
961 584
— 1 474 429
226 910
201 443
122 059
114 500
88 482
127 165
880 560
13 757
11 310
9 944
9 856
11 004
52 029
107 900
368 878
340 965
1 683 714
252 568
1 061 071
179 194
3 886 390
*See Note 4 for a specification of the nominal payments for the lease component of the contractual liability
**NOK 107.8 million attributable to various loans provided by government agencies in Canada concerning the development of the Newfoundland region. These loans are recognized at
present value, with a calculated interest charged to the income statement until maturity.
LIABILITIES SECURED BY MORTGAGES/CHANGES ON ASSETS NOK 1 000
Liabilities secured by mortgages/charges on assets
ASSETS PLEDGED AS SECURITY NOK 1 000
Licenses
Property, plant and equipment (excl. the effect of IFRS 16 / prior IAS 17 operational leases)
Trade receivables
Inventories and biological assets excl. fair value of biological assets
Total assets pledged as security
2023
2022
2 642 413
1 899 364
2023
2022
1 489 798
1 463 709
4 112 535
3 562 816
327 160
259 137
3 966 011
3 136 381
9 895 503
8 422 043
Pledges also include shares in subsidiaries in addition to charges directly on assets. The book value of these shares is NOK 0 for the Group, as such shares according to the
consolidation method of subsidiaries are eliminated in the Group. See Note 13 in the financial statement of the parent, Grieg Seafood ASA.
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
31.12.2023
NOK
CAD
Green bond loan
Syndicated term-loan
1 392 500
1 392 500
1 393 908
656 250
Syndicated revolving credit facility
750 000
750 000
—
—
—
EUR
—
737 658
—
USD
GBP
OTHER
—
—
—
—
—
—
—
—
—
Overdraft facility*
Lease liabilities
63 113
79 924
140 824
-87 393
-52 476
-16 068
-1 698
Other non-current and current liabilities
117 535
—
117 535
Amortization effect of loans
-16 742
-16 742
—
1 410 674
870 850
539 824
—
—
—
—
—
—
—
—
—
—
—
—
Total
5 110 989
3 732 782
798 184
650 265
-52 476
-16 068
-1 698
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
BOOK VALUE
FAIR VALUE
BOOK VALUE AND FAIR VALUE OF BORROWINGS NOK 1 000
2023
2022
2023
2022
Green bond loan
1 392 500
1 423 500
1 404 684
1 414 532
Borrowings (non-current syndicated loan and revolver credit facility, incl. current
part of the non-current liability and overdraft facility)
Total
2 207 021
1 474 429
2 207 021
1 474 429
3 599 521
2 897 929
3 611 705
2 888 961
Book values in the table above are excluding the amortization effect of loan cost.
The book value of borrowings (excluding the green bond) closely approximates to the fair value.
Our green bond is listed on Oslo Børs (Euronext). Our green bond is listed on Oslo Børs (Euronext). Market price of the bond was 100.88% of par value at year-end 2023 (2022: 99.37%).
2023
CHANGE IN LIABILITIES ARISING FROM
FINANCING ACTIVITIES NOK 1 000
Green bond loan
Syndicated term-loan
31.12.2022 CASH INFLOW
CASH
OUTFLOW
TOTAL CASH
FLOW
TOTAL
NON-CASH
MOVEMENTS
31.12.2023
1 423 500
1 474 429
—
—
-56 000
-56 000
25 000
1 392 500
-133 275
-133 275
52 753
1 393 908
Syndicated revolving credit facility
—
750 000
—
750 000
Other interest-bearing liabilities
107 900
4 379
-4 242
137
—
9 498
750 000
117 535
Long-term int.-bearing liabilities excl leases
3 005 830
754 379
-193 517
560 862
87 252
3 653 943
Overdraft facility
Short-term int.-bearing liabilities excl leases
Amortized loan costs
Total borrowings
Lease liabilities
—
—
-25 053
63 113
63 113
—
63 113
63 113
—
—
63 113
63 113
—
8 311
-16 742
—
—
2 980 777
817 492
-193 517
623 975
95 563
3 700 314
880 560
—
-279 830
-279 830
809 944
1 410 674
Total borrowings and lease liabilities
3 861 337
817 492
-473 348
344 145
905 507
5 110 989
SPECIFICATION OF NON-CASH FLOW
MOVEMENTS FOR 2023 NOK 1 000
NEW LEASE
LIABILITY
OTHER
CHANGES
AMORTIZED
LOAN COSTS
FOREIGN
CURRENCY
TRANSLATION
TOTAL
NON-CASH
MOVEMENTS
Green bond loan
Syndicated term-loan
Syndicated revolving credit facility
Other interest-bearing liabilities
Long-term int.-bearing liabilities excl leases
—
—
—
—
—
—
—
—
—
708 349
708 349
25 000
—
—
3 772
28 772
—
—
—
28 772
87 751
116 524
—
—
—
—
—
—
—
8 311
8 311
—
8 311
—
52 753
—
5 726
25 000
52 753
—
9 498
58 479
87 252
—
—
—
58 479
13 844
72 323
—
—
8 311
95 563
809 944
905 507
BOOK VALUE OF GROUP BORROWINGS BY
CURRENCY NOK 1 000
Green bond loan
Syndicated term-loan
Lease liabilities
31.12.2022
NOK
CAD
1 423 500
1 423 500
1 474 429
718 750
—
—
880 560
536 129
344 431
Other non-current and current liabilities
107 900
—
107 900
Amortization effect of loans
-25 053
-25 053
—
EUR
—
755 679
—
—
—
Total
3 861 337
2 653 326
452 331
755 679
USD
GBP
OTHER
Overdraft facility
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Short-term int.-bearing liabilities excl leases
Amortized loan costs
Total borrowings
Lease liabilities
Total borrowings and lease liabilities
PART 03 - OUR FINANCIAL RESULTS
117
2022
NOTE 28 LEASES
CHANGE IN LIABILITIES ARISING FROM
FINANCING ACTIVITIES NOK 1 000
31.12.2021 CASH INFLOW
CASH
OUTFLOW
TOTAL CASH
FLOW
TOTAL
NON-CASH
MOVEMENTS
31.12.2022
Green bond loan
Syndicated term-loan
Syndicated revolving credit facility
Other interest-bearing liabilities
1 500 000
—
-50 275
424 524
1 463 423
-469 288
-50 275
994 134
-26 225
1 423 500
55 771
1 474 429
440 000
100 622
—
—
-440 000
-440 000
—
—
-2 582
-2 582
9 860
107 900
Long-term int.-bearing liabilities excl leases
2 465 146
1 463 423
-962 146
501 277
39 407
3 005 830
Overdraft facility
Short-term int.-bearing liabilities excl leases
Amortized loan costs
Total borrowings
Lease liabilities
—
—
-29 671
—
—
—
—
—
-11 854
2 435 474
1 463 423
-973 999
—
—
-11 854
489 423
—
—
16 471
55 878
—
—
-25 053
2 980 777
755 828
—
-225 468
-225 468
350 200
880 560
Total borrowings and lease liabilities
3 191 303
1 463 423
-1 199 467
263 955
406 078
3 861 337
SPECIFICATION OF NON-CASH FLOW
MOVEMENTS FOR 2022 NOK 1 000
NEW LEASE
LIABILITY
OTHER
CHANGES
AMORTIZED
LOAN COSTS
FOREIGN
CURRENCY
TRANSLATION
TOTAL
NON-CASH
MOVEMENTS
Green bond loan
Syndicated term-loan
Syndicated revolving credit facility
Other interest-bearing liabilities
Long-term int.-bearing liabilities excl leases
Overdraft facility
Short-term int.-bearing liabilities excl leases
Amortized loan costs
Total borrowings
Lease liabilities
Total borrowings and lease liabilities
—
—
—
—
—
—
—
—
—
255 901
255 901
-26 225
—
—
4 625
-21 600
—
—
—
-21 600
83 654
62 055
—
—
—
—
—
—
—
16 471
16 471
—
16 471
—
55 771
—
5 235
-26 225
55 771
—
9 860
61 006
39 407
—
—
—
61 006
10 644
71 651
—
—
16 471
55 878
350 200
406 078
ACCOUNTING POLICIES
The Group as a lessee
The Group acts primarily as a lessee as the Group do not have any business directed toward a role as a lessor. However, from time
to time, when overcapacity on operational assets (e.g. well-boats), leased assets may be subleased by the Group.
Identifying a lease
The Group has several lease arrangements; various offices, equipment and vehicles. Contracts are engaged both with credit
institutions and external parties (where the material leases are mostly with well-boat and workboat providers).
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease
and non-lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease
agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased
assets may not be used as security for borrowing purposes. The leases are recognized in the respective Group companies in local
currencies, and translated to the Group’s presentation currency at the balance sheet date.
Lease payments
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the
lessee’s incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms,
security and conditions. The Group reassesses the incremental borrowing rates applicable for new lease agreements annually. The
applied incremental borrowing rates for new leases as from 2023 ranged from 4.8% - 5.7% for buildings and properties, and 4.9% -
6.2% for other assets.
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included
in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease
liability is reassessed and adjusted against the right-of-use asset.
Extension options
Some of the Group's agreements have extension options which may by exercised during the last period of the lease term. The
Group assesses at the commencement whether it is reasonably certain to exercise the renewal right. The Group's potential
future lease payments not included in the lease liabilities related to extension options is NOK 357 million (NOK 267 million at
31 December 2022).
Practical expedient
The Group leases smaller office equipment, such as coffee machines with contract terms of 1-3 years. The Group has elected to
apply the practical expedient of low-value assets for some of these leases. Leases that have a present value as new lower than
USD 5 000, are considered low value leases. The Group has also applied the practical expedient for short-term leases. Short term
is defined as a lease term of 12 month or less at the commencement date. For low-value leases and short-term leases, the Group
does not recognize lease liabilities or right-of-use assets. These leases are recognized as operating expenses over the life of the
contract.
Presentation
The Group presents its lease liability separately from other liabilities in the statement of financial position. The Group presents its
right-of-use assets on the financial statement line item “Property, plant and equipment incl. right-of-use assets”.
PART 03 - OUR FINANCIAL RESULTS
118
TOTAL
978 143
14 767
707 898
44 848
AMOUNTS RECOGNIZED IN THE INCOME STATEMENT NOK 1 000
Interest on lease liabilities
Foreign currency effect
Depreciation right-of-use assets
Income from subleasing of right-of-use assets
Expenses relating to short-term leases
-200 681
-248 576
1 063 884
1 497 079
Expenses relating to leases of low-value assets, excl. short-term leases of low-value assets
Total amounts recognized in the income statement
TOTAL
835 898
15 048
339 450
-24 849
NOK 1 000
Total cash outflow for leases
-140 396
-187 404
547 010
978 143
NOTE 29 OTHER CURRENT LIABILITIES
2023
2022
OTHER CURRENT LIABILITIES NOK 1 000
880 560
708 349
755 828
255 901
-279 830
-225 468
13 845
87 751
10 902
83 397
1 410 674
880 560
Accrued expenses1
Production fee (Norway)2
Realized gain/loss on fixed-price contracts3
Other current liabilities4
Other current liabilities
2023
-55 765
1 142
2022
-33 613
3 746
-248 576
-187 404
8 801
-23 176
-1
31 261
-40 530
-1
-317 576
-226 543
2023
335 596
2022
259 081
2023
166 326
11 137
8 424
49 697
2022
150 241
7 987
30 930
99 052
235 584
288 210
1 Accrued expenses relate to other operating expenses, including accrued purchases, transportation costs, bonuses/discounts for buyers, accrued salaries, and insurance.
2 Production fee charged by NOK 0.56/kg for harvested volume (gutted weight) during the first half of 2023, and NOK 0.90/kg for harvested volume (gutted weight) during the second
half of 2023 (NOK 0.405/kg in 2022) in Rogaland and Finnmark in Norway. The production fee is settled throughout the year. The production fee is presented on a separate financial
statement line item in the income statement ("Production fee").
3 See Note 31.
4 2022 figures Include NOK 25 million related to repurchased bonds. The repurchase was finalized in 2022 but settled in cash in 2023. In addition, NOK 28 million related to litigation
and claims was accrued at year-end 2022, see Note 10. 2023 does not include such items as per year-end 2023.
*Incl. the effect of exercising extension options and CPI adjustment of applicable leases.
RIGHT-OF-USE ASSETS 2023
NOK 1 000
Book value at 01.01.
Currency translation differences
Additions
Other changes in the right-of-use assets*
Depreciation
Book value at 31.12.
RIGHT-OF-USE ASSETS 2022
NOK 1 000
Book value at 01.01.
Currency translation differences
Additions
Other changes in the right-of-use assets*
Depreciation
Book value at 31.12.
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
66 622
292 209
1 690
5 194
3 520
-12 978
64 048
—
43 350
-12 273
-20 179
303 108
72 302
17
23 193
-14 734
-14 739
66 039
67 927
1 760
10 036
-1 399
-11 703
66 622
242 934
26
69 549
-743
-19 556
292 209
87 743
43
8 058
-7 792
-15 749
72 302
547 010
13 060
636 161
68 335
437 294
13 220
251 807
-14 915
BUILDINGS/
PROPERTY
PROD. PLANTS
AND BARGES
NETS, CAGES
AND MOORINGS
OTHER
EQUIPMENT
*Incl. the effect of exercising extension options and CPI adjustment of applicable leases.
LEASE LIABILITIES NOK 1 000
Lease liabilities at 01.01.
New leases recognized during the year
Cash payments for the principal portion of the lease liability
Currency exchange differences
Other changes in the lease liabilities*
Total lease liabilities at 31.12.
*Incl. the effect of exercising extension options and CPI adjustment of applicable leases.
See Note 4 for a maturity analysis for the contractual nominal amount (of the lease component in the contract) of the total lease liabilities.
SPECIFICATION OF LEASE LIABILITIES AT 31.12
NOK 1 000
Non-current portion
Current portion
2023
CLASSIFIED
AS FINANCIAL
LEASE FOR THE
LESSOR
CLASSIFIED
AS OPERATING
LEASE FOR THE
LESSOR
TOTAL LEASE
LIABILITY
329 013
75 948
782 036
223 678
1 111 049
299 626
Total lease liabilities included in the statement of financial position at 31.12
404 960
1 005 714
1 410 674
SPECIFICATION OF LEASE LIABILITIES AT 31.12
NOK 1 000
Non-current portion
Current portion
Total lease liabilities included in the statement of financial position at 31.12
2022
CLASSIFIED
AS FINANCIAL
LEASE FOR THE
LESSOR
CLASSIFIED
AS OPERATING
LEASE FOR THE
LESSOR
318 198
78 416
396 614
335 452
148 494
483 946
TOTAL LEASE
LIABILITY
653 650
226 910
880 560
PART 03 - OUR FINANCIAL RESULTS
119
NOTE 30 RELATED PARTIES
NOTE 31 FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENT
2023 NOK 1 000
Total related parties as shareholders
Total related parties as associates
Total
2022 NOK 1 000
Total related parties as shareholders
Total related parties as associates
Total
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
—
—
—
22 797
174 380
197 177
—
41 129
41 129
-5 039
-182
-5 221
OPERATING
INCOME
OPERATING
EXPENSES
NON-CURRENT
BALANCES
CURRENT
BALANCES
—
—
—
33 742
168 353
202 095
—
16 650
16 650
-1 906
-40 879
-42 785
The Grieg Seafood Group carries out, in the normal course of business, transactions with companies controlled by Grieg Maturitas II AS,
which is the parent company of Grieg Aqua AS, the majority owner of Grieg Seafood ASA. The ultimate parent company of Grieg Seafood
ASA is Grieg Maturitas AS, the parent company of Grieg Maturitas II AS. These transactions relate to:
• ICT-related services and other functions such as catering, reception, etc., are provided by Grieg Group Resources AS on an arm’s
length basis.
• Grieg Seafood ASA rents its offices from Grieg Gaarden AS on an arm’s length basis. The office rental agreement runs for a period of
ten years.
• Grieg Seafood ASA purchases services from Grieg Investor AS.
• The regions purchased cleaner fish from Rensefiskgruppen AS including subsidiaries, a company owned by Grieg Kapital AS.
Furthermore, the Group also purchases goods and services from associated companies, including companies affiliated with the Group
through managerial positions in Grieg Seafood and the related party. These transactions relate to:
• Purchase of smolt from the associated company Tytlandsvik Aqua AS, which is owned 33.33% by Grieg Seafood Rogaland AS.
• Purchase of smolt from the associated company Nordnorsk Smolt AS, which is owned 50.00% by Grieg Seafood Finnmark AS.
• Interest-bearing loan provided to Årdal Aqua AS, which is owned 44.44% by Grieg Seafood Rogaland AS.
• Interest-bearing loan provided to Nordnorsk Smolt AS, which is owned 50.00% by Grieg Seafood Finnmark AS.
• Non-interest bearing loan provided to an affiliated company of NextSeafood AS, which is owned 50.00% by Grieg Seafood Rogaland AS.
• Fuel is purchased from Eidsvaag AS, which is affiliated with Grieg Seafood through a board member of Grieg Seafood being the Chair
of the Board of Directors of the affiliated company.
• Algae monitoring services are purchased from Blue Planet AS, which is affiliated with Grieg Seafood through the Chief Operating
Officer Norway of the Group being the Chair of the Board of Directors of the affiliated company.
The parent company provides a range of services to its subsidiaries. The services include administrative services performed on behalf of
the subsidiaries of the Group. Grieg Seafood ASA is set up with facility agreements with external parties incl. banks, and lend out funds
to subsidiaries. Interest is charged on an arm's length basis. In addition, Grieg Seafood ASA engages in hedge contracts on behalf of
subsidiaries. The arrangement is intended to reduce these companies' exposure to salmon prices. Agreements with the subsidiaries are
priced on the basis of a "back-to-back" arrangement.
The Board and Group Management are related parties. See Note 8 on share-based options and Note 24 on shares controlled by members
of the Board and Group Management.
All transactions, including both the sale and purchase of goods and services, are made on an arm’s length basis.
ACCOUNTING POLICIES
A financial instrument is any contract that gives rise to a financial asset for one entity and a financial liability or equity instrument
for another entity. The classification is performed in accordance with the substance of the contractual arrangement, and in line
with the definitions of a financial asset, a financial liability and an equity instrument.
Ordinary purchases and sales of investments are recognized on the trade-date, the date on which the Group commits to purchase
or sell the asset. All financial assets that are not stated at fair value through profit or loss are initially recognized at fair value plus
transaction costs.
FINANCIAL ASSETS
Financial assets are initially recognized at fair value when Grieg Seafood becomes party to the contractual provision of the asset.
The subsequent measurement of the financial asset depends on which category the asset have been classified into at inception of
the contract. The classification is based on an evaluation of the contractual terms and the business model applied.
The Group does not have financial assets with fair value measured through other comprehensive income. As such, the Group’s
categories of financial assets range from amortized cost and fair value through profit and loss.
Financial assets at amortized cost
The Group’s financial assets measured at amortized cost includes trade receivables and other short-term deposits. The Group
does not normally have, and has not had at year date of the reporting year nor in the comparable period, trade receivables that
contain a significant financing component. Financial assets at amortized cost are subsequently measured using the effective
interest (EIR) method and are subject to impairment.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value, with net changes
in fair value recognized in the income statement. Derivatives are initially recognized at fair value on the date a derivative contract
is entered into, and are subsequently stated at fair value on an ongoing basis. The category also include the Group’s investments in
debt instruments and money market funds.
Impairment of financial assets
The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit
or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. See Note 20 for more
information concerning trade receivables.
FINANCIAL LIABILITIES
Financial liabilities are classified, at initial recognition, as amortized cost (loans and borrowings), or as financial liabilities at fair
value through profit or loss.
Financial liabilities at amortized cost (loans and borrowings)
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR
method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR
amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortization is included as finance costs in the income statement.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial derivative contracts. Derivatives are initially recognized at
fair value on the date a derivative contract is entered into, and are subsequently stated at fair value on an ongoing basis.
PART 03 - OUR FINANCIAL RESULTS
120
FINANCIAL INSTRUMENTS NOK 1 000
FVPL 1 AMORTIZED COST
FVOCI 2
TOTAL
31.12.2023
FAIR VALUE MEASUREMENT
FINANCIAL ASSETS
Other non-current receivables3
Trade receivables
Other current receivables
Derivatives5
Cash and cash equivalents
Total financial assets
FINANCIAL LIABILITIES
Borrowings
Lease liabilities
Share-based payments6
Derivatives5
Trade payables
Other current liabilities
Total financial liabilities
131
—
—
35 164
—
35 295
—
—
7 566
1 709
—
—
41 129
327 160
20 292
—
216 318
604 899
3 491 980
1 410 674
—
—
760 753
15 667
9 275
5 679 075
271
—
—
—
—
271
—
—
—
—
—
—
—
41 531
327 160
20 292
35 164
216 318
640 466
3 491 980
1 410 674
7 566
1 709
760 753
15 667
5 688 349
ACCOUNTING POLICIES
The following of the Group’s financial instruments are not measured at fair value: cash and cash equivalents, accounts receivables,
other current receivables and payables, bank loans, bond loans and leasing liabilities.
The Group uses the following hierarchy of valuation techniques to determine and disclose the fair value of financial instruments:
• Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities
• Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either
directly or indirectly
• Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
For recurring level 3 measurements, transfers between the levels in the fair value hierarchy are evaluated when reassessing the
categories of the financial instruments at the end of the period. During the reporting period, there were no changes in the fair value
measurement which caused transfers between level 1 and level 2, and no transfers to or from level 3.
The information below describes valuation techniques for fair value measurement and estimation used by Grieg Seafood, including leases
and the fair value adjustment of biological assets.
31.12.2022
(I) FINANCIAL DERIVATIVE INSTRUMENTS
FINANCIAL INSTRUMENTS NOK 1 000
FVPL 1 AMORTIZED COST
FVOCI 2
TOTAL
FINANCIAL ASSETS
Other non-current receivables3
Trade receivables
Other current receivables
Investment in money market funds4
Derivatives5
Cash and cash equivalents
Total financial assets
FINANCIAL LIABILITIES
Borrowings
Lease liabilities
Share-based payments6
Derivatives5
Trade payables
Other current liabilities
Total financial liabilities
—
—
—
1 012 848
37 988
—
1 050 836
—
—
6 510
64 928
—
—
16 900
259 137
8 863
—
—
642 719
927 618
2 980 777
880 560
—
—
717 498
76 585
71 439
4 655 420
271
—
—
—
—
—
17 171
259 137
8 863
1 012 848
37 988
642 719
271
1 978 725
—
—
—
—
—
—
—
2 980 777
880 560
6 510
64 928
717 498
76 585
4 726 859
1 FVPL: Fair value through profit or loss.
2 FVOCI: Fair value through other comprehensive income.
3 Investments in non-listed shares (equity instruments). Measured at level 3. Loans to associated companies at amortized cost.
4 Investments in money market funds. Measured at level 2. See Note 22 for more information.
5 Forward currency contracts, interest rate swap and financial salmon price contracts. Measured at level 2. See below for specification. The purpose of the derivatives is to reduce the
Group´s exposure to changes in floating interest rates, exchange rates and fluctuations in the salmon sales price.
6 Synthetic option scheme. Measured at level 3. See Note 8 for more information.
The fair value of quoted financial assets classified as financial assets at fair value through OCI is determined by reference to published
price quotations in an active market. The fair value of financial instruments that are not traded in an active market is determined using
valuation techniques. The fair value of forward currency contracts is determined using the forward exchange rate at the end of the
reporting period. The fair value of interest rate swaps is determined by the present value of future cash flows. The fair value of options is
determined using option pricing models. For all the above-mentioned derivatives, the fair value is confirmed by the financial institution
with which the Group has entered into the contracts.
The carrying value of derivatives and other financial instruments as at 31 December 2023 and 31 December 2022 is shown in the table
below. All the financial derivative instruments included in the table below are measured according to level 2 of the fair value hierarchy.
FAIR VALUE OF FINANCIAL DERIVATIVES NOK 1 000
NOTE
2023
2022
Forward currency contracts at fair value through profit or loss
Interest rate swap agreements
Financial salmon contract - sales contracts*
Total financial instruments at fair value
4
4
ASSETS
11 852
23 312
—
35 164
CURRENT
LIABILITIES
ASSETS
CURRENT
LIABILITIES
—
—
1 709
1 709
2 749
35 238
—
37 988
9
—
64 920
64 928
*In addition, as at year-end 2023, Grieg Seafood had NOK 8 million (2022: NOK 31 million) classified as current liabilities (see note Note 29) related to realized financial salmon
contracts. This amount represents settled price contracts, not part of the fair value amount of the financial instrument (derivative contract).
(II) TRADE RECEIVABLES, OTHER RECEIVABLES AND TRADE PAYABLES
The nominal value less write-downs for realized losses on trade receivables and trade payables is assumed to correspond to the fair
value of these items, as they are short term and entered into on “normal” terms and conditions.
(III) CASH AND CASH EQUIVALENTS
The carrying amount of cash and cash equivalents is approximately equal to fair value, since these instruments have a short term to
maturity.
(IV) BANK AND BOND LOANS
The carrying amount of bank loans is assessed to be approximately equal to fair value because the floating interest rate is adjusted to
reflect current conditions. The fair value of the bond loan is disclosed in Note 27.
PART 03 - OUR FINANCIAL RESULTS
121
(V) LEASES
The fair value of financial assets and liabilities recognized at their carrying amount is calculated as the present value of estimated cash
flows discounted by the interest rate that applies to corresponding liabilities and assets at the end of the reporting period. This applies to
lease liabilities, see Note 28.
(VI) BIOLOGICAL ASSETS
Fish in the sea is measured at estimated fair value. Consequently, the value of biological inventories is likely to vary more than the value
of inventories based on cost. The estimated fair value varies for a number of reasons, including volatility in the price of Atlantic salmon,
factors relating to production, changes in harvesting schedules and changes in the composition of inventories. See more information
concerning the fair value estimation of biological assets in Note 19.
NOTE 32 EVENTS AFTER THE REPORTING DATE
On 25 January 2024, Grieg Seafood received a Statement of Objections (SO) from the European Commission related to its investigation
of potential anti-competitive behavior regarding the sale of farmed Norwegian Atlantic salmon which was launched back in 2019. The
issuance of a SO is a common and formal step in the process without prejudice of the final outcome, where the European Commission
sets out its preliminary view in the matter.
On 9 February 2024, the Federal Court in Canada approved the settlement agreement dated 22 September 2023 entered into by the
plaintiffs and Grieg Seafood regarding the proposed three class-actions in Canada.
On 13 and 14 February 2024, Grieg Seafood ASA and Grieg Seafood UK Limited have received a service letter according to which certain
claimants filed a claim for damages against, among other, Grieg Seafood ASA and Grieg Seafood UK Limited arising from alleged
unlawful cartel arrangements in relation to the supply of farmed Atlantic salmon.
In general, Grieg Seafood denies any anti-competitive conduct whether it is in regard to the European Commission’ investigation, the
claim filed in the UK or any possible future claims related to this matter subsequent to the issuance of the SO. Therefore, no provision
has been recognized at the current stage. We will continue to collaborate with the European Commission and follow up all processes as it
deems appropriate.
There have not been any other significant events after the balance sheet date of 31 December 2023.
PART 03 - OUR FINANCIAL RESULTS
122
GRIEG SEAFOOD
ASA ACCOUNTS
ASA ACCOUNTS
124
Income statement
125
126
126
Statement of financial position
Statement of changes in equity
Cash flow statement
NOTES
127
NOTE 1
Accounting policies
128
128
128
130
130
131
131
131
132
132
133
134
135
138
138
138
NOTE 2
Related parties
NOTE 3
Operating income
NOTE 4
Salaries, personnel and other operating expenses
NOTE 5
Financial income and financial expenses
NOTE 6
Income taxes
NOTE 7
Software, and property, plant and equipment
NOTE 8
Investments in subsidiaries
NOTE 9
Other current receivables
NOTE 10
Short-term investments and derivatives
NOTE 11
Cash and cash equivalents
NOTE 12
Share capital and shareholder information
NOTE 13
Net interest-bearing liabilities and pledges
NOTE 14
Share-based payments
NOTE 15
Other current liabilities
NOTE 16
Guarantees
NOTE 17
Events after the reporting date
PART 03 - OUR FINANCIAL RESULTS
123
INCOME STATEMENT
GRIEG SEAFOOD ASA NOK 1 000
Other operating income
Total operating income
Salaries and personnel expenses
Depreciation and amortization
Other operating expenses
Total operating expenses
Operating profit (loss)
Financial income
Financial expenses
Net financial items
Profit before tax
Income tax expense
Net profit for the year
APPROPRIATION OF PROFIT FOR THE YEAR
Proposed dividend
Transferred from other equity
Total appropriations
NOTE
2/3
4/14
7
2/4
2/5
2/5
6
2023
258 137
258 137
-84 870
-3 357
-84 964
-173 191
2022
288 015
288 015
-118 348
-6 984
-199 548
-324 879
84 946
-36 865
410 974
-285 218
1 273 786
-221 178
125 756
1 052 608
210 702
1 015 743
-51 593
159 109
196 233
-37 125
159 109
-221 666
794 077
504 120
289 957
794 077
PART 03 - OUR FINANCIAL RESULTS
124
STATEMENT OF FINANCIAL POSITION
GRIEG SEAFOOD ASA NOK 1 000
NOTE
31.12.2023
31.12.2022
GRIEG SEAFOOD ASA NOK 1 000
NOTE
31.12.2023
31.12.2022
ASSETS
Deferred tax assets
Software
Property, plant and equipment
Investments in subsidiaries
Loan to Group companies
Investment in shares
Total non-current assets
Trade receivables from Group companies
Other receivables from Group companies
Other current receivables
Short-term investments and financial instruments
Cash and cash equivalents
Total current assets
Total assets
6
7
7
8
2
2
2
2/9
10
11
296
7 265
1 209
14 192
8 357
1 207
2 022 531
1 903 409
810 459
169
797 907
169
2 841 929
2 725 241
131 650
180 989
4 567 414
2 715 580
10 445
4 908
27 194
18 281
1 013 415
524 823
4 741 610
4 453 087
7 583 539
7 178 328
EQUITY AND LIABILITIES
Share capital
Treasury shares
Other paid-in equity
Contingent consideration
Other retained earnings
Total equity
Share-based payments
Total provisions
Green bond loan
Non-current loan
Total non-current liabilities
Current portion of non-current loan
Share-based payments
Trade payables
Trade payables to Group companies
Current liabilities to Group companies
Tax payable
Public duties payable
Accrued dividend
Other current liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
BERGEN, 21 March 2024
The Board of Directors and CEO of Grieg Seafood ASA
12
12
14
13
13
13
14
2
2
2
6
2/15
453 788
-5 255
228 593
701 535
1 602 064
2 980 725
8 178
8 178
1 383 463
2 003 450
453 788
-5 407
227 477
701 535
1 633 390
3 010 783
6 756
6 756
1 408 523
1 336 142
3 386 913
2 744 665
195 866
128 211
833
9 910
27 619
743 739
—
5 530
196 233
27 993
672
5 432
8 526
412 125
243 039
9 586
504 120
104 414
1 207 723
1 416 125
4 602 814
4 167 547
7 583 539
7 178 328
PER GRIEG
Chair
TORE HOLAND
Vice Chair
KATRINE TROVIK
Board Member
RAGNHILD JANBU FRESVIK
Board Member
MARIANNE RIBE
Board Member
NICOLAI HAFELD GRIEG
ANDREAS KVAME
Board Member
CEO
PART 03 - OUR FINANCIAL RESULTS
125
STATEMENT OF CHANGES IN EQUITY
GRIEG SEAFOOD ASA NOK 1 000
Equity at 01.01.2022
Profit for the year 2022
Sale of treasury shares to employees
Purchase of treasury shares
Accrued dividend at year-end*
Equity at 31.12.2022
Equity at 01.01.2023
Profit for the year 2023
Sale of treasury shares to employees
Purchase of treasury shares
Accrued dividend at year-end*
Equity at 31.12.2023
SHARE
CAPITAL
TREASURY
SHARES
OTHER PAID-
IN EQUITY
CONTINGENT
CONS.**
OTHER
EQUITY
TOTAL
EQUITY
453 788
-4 532
226 468
701 535
1 366 671
2 743 930
—
—
—
—
—
385
-1 260
—
—
1 009
—
—
—
—
—
—
794 077
794 077
5 501
6 895
-28 739
-29 999
-504 120
-504 120
453 788
-5 407
227 477
701 535
1 633 390
3 010 783
453 788
-5 407
227 477
701 535
1 633 390
3 010 783
—
—
—
—
—
433
-280
—
—
1 116
—
—
—
—
—
159 109
159 109
5 517
280
7 065
—
-196 233
-196 233
453 788
-5 255
228 593
701 535
1 602 064
2 980 725
*Accrued dividend is allocated as at 31 December and not yet authorized by the Annual General Meeting (AGM)
** Contingent consideration related to the acquisition of Grieg Seafood Newfoundland AS. See Note 25 in the Group Accounts for more information.
CASH FLOW STATEMENT
GRIEG SEAFOOD ASA NOK 1 000
Profit before tax
Recognized, not paid Group contributions
Taxes paid
Depreciation and amortization
Change in trade receivables
Change in trade payables
Change in other accruals
Items classified as investing or financing activities
Currency translation differences
Net cash flow from operating activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments/proceeds, loans to/from Group companies
Group contribution from subsidiaries
Investment in money market funds
Net cash flow from investing activities
Proceeds of long-term interest bearing debt
Repayment of long-term interest-bearing debt
Proceeds of short-term interest bearing debt
Change in loans to/from Group companies
Interest paid
Paid dividends
Repurchase of own shares
Net cash flow from financing activities
Net change in cash and cash equivalents
Cash and cash equivalents at 01.01.
Cash and cash equivalents at 31.12.
CASH AND CASH EQUIVALENTS AT 31.12. CONSISTS OF:
Restricted deposits
Other bank deposits
UNUTILIZED CREDIT FACILITIES AT 31.12:
Unutilized credit facilities at the year-end
NOTE
6
7
7
7
10
13
13
13
5
11
2023
210 702
—
-247 137
3 357
49 339
23 571
-89 086
227 007
40 201
217 955
-674
-1 592
-2 847 125
995 290
2022
1 015 742
-995 291
-79 658
6 984
-180 811
-10 751
40 515
121 889
44 961
-36 421
-659
-2 581
121 030
307 845
1 041 914
-1 000 224
-812 187
-574 589
750 000
-164 275
63 113
178 892
-221 467
-504 120
-5 540
96 603
1 463 423
-960 788
—
310 014
-108 349
-336 942
-24 400
342 957
-497 629
-268 052
524 823
27 194
1 000
26 194
792 875
524 823
1 000
523 823
886 887
1 700 000
PART 03 - OUR FINANCIAL RESULTS
126
NOTE 1 ACCOUNTING POLICIES
The annual financial statements have been prepared in
as operating expenses as they arise, while improvements and
accordance with the Norwegian Accounting Act and generally
additions are added to the acquisition cost of the asset and
accepted accounting principles in Norway.
depreciated at the same rate as the asset. The distinction
between maintenance and improvements is made based on the
All amounts are stated in NOK thousand, unless otherwise
asset’s relative condition on the original purchase date.
indicated.
USE OF ESTIMATES
Management has used estimates and assumptions that have
SUBSIDIARIES
Subsidiaries are recognized at cost in the financial statement
of Grieg Seafood ASA (parent). Group contributions paid to
affected assets, liabilities, revenues, expenses and information
subsidiaries, net of tax, are recognized as an increase in the
on potential liabilities in accordance with generally accepted
cost of the shares. Dividends and group contributions from
accounting principles in Norway.
REVENUE RECOGNITION
Revenue from the sale of goods is recognized at the time
subsidiaries to Grieg Seafood ASA are recognized in the same
year in the Company’s financial statement as when recognized
in the subsidiary’s financial statements. If dividends/group
contributions materially exceed retained earnings received from
of delivery. Revenue from the sale of services is recognized
the investment in the subsidiary after acquisition, the excess
when the services are performed. The share of sales revenue
amount is regarded as a reimbursement of invested capital
associated with future service is recognized in the statement of
and is deducted from the recognized cost of investment in the
financial position as accrued sales revenues and is transferred to
subsidiary in the statement of financial position of Grieg Seafood
income at the time of execution.
ASA. Dividends and group contributions received are recognized
CLASSIFICATION AND VALUATION OF
BALANCE SHEET ITEMS
Assets intended for long-term ownership or use are classified as
in the income statement as other financial income.
Contingent consideration is included in costs on the acquisition
date of a subsidiary. The likelihood of payment and time value
non-current assets. Assets related to the normal operating cycle
of money are considered when estimating the fair value of the
are classified as current assets. Receivables are classified as
contingent consideration on the acquisition date.
current assets if they are expected to be repaid within 12 months
of the transaction date. Similar criteria are applied to liabilities.
Current assets are valued at the lower of cost and fair value.
IMPAIRMENT OF NON-CURRENT ASSETS
Impairment tests are performed upon indication that the carrying
Current liabilities are recognized in the balance sheet at nominal
amount of a non-current asset exceeds its estimated fair value.
value. Non-current assets are valued at historical cost. Property,
The test is performed at the lowest level of non-current assets
plant and equipment whose value will deteriorate is depreciated
at which independent cash flows can be identified. If the carrying
on a straight-line basis over the asset’s estimated useful life.
amount is higher than both the fair value less costs to sell and
Non-current assets are written down to fair value where this is
the value in use (net present value of future use/ownership), the
required by accounting rules. Nominal amounts are discounted if
asset is written down to the higher of fair value less costs to sell
the interest rate element is material.
INTANGIBLE ASSETS
Expenditure on intangible assets is recognized in the statement
of financial position to the extent that a future economic
benefit can be identified as deriving from the development
and the value in use. Previous impairment charges are reversed
in a later period if the prerequisites for impairment are no longer
present (except for impairment of goodwill).
TRADE AND OTHER RECEIVABLES
Trade and other receivables are recognized in the statement of
of an identifiable intangible asset and cost can be measured
financial position at nominal value after a provision for bad debts.
reliably. Otherwise, the cost is expensed as it arises. Capitalized
The provision for bad debts is estimated based on an individual
development costs are amortized over their useful life.
assessment of each material receivable.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is recognized in the statement of
financial position and depreciated on a straight-line basis over its
estimated useful life, providing the asset has an expected useful
life of more than 3 years and a cost price of more than NOK 15
000. Maintenance costs are recognized in the income statement
CURRENT INVESTMENTS
Current investments (shares and investments which are
SHARE-BASED PAYMENTS
The Company operates a share-based remuneration scheme
considered current assets) are carried at the lower of acquisition
for the Group management of the Grieg Seafood Group. The
cost and fair value at the reporting date. Dividends and other
share-based option scheme is a synthetic option scheme with
distributions received are recognized as other financial income.
settlement in cash. Each member of the scheme is obliged to
Investments in money market funds are measured at fair value
purchase shares relative to their annual salary. The company’s
in the Company’s statement of financial position. Unrealized
estimated liability is recognized as a current or non-current
gains (losses) are presented as financial income (-expense) in the
liability based on the estimated settlement date. The cost for the
income statement.
year is recognized in the income statement.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash in hand, bank deposits
and other short-term highly liquid investments with original
maturities of three months or less. The overdraft facility is
DERIVATIVES
FORWARD CURRENCY CONTRACTS
Realized gains (losses) on forward currency contracts are
included in current borrowings in the statement of financial
recognized in the income statement as a financial income
position.
PENSIONS
The company’s pension schemes meet the requirements of
the Norwegian Mandatory Occupational Pensions Act. The
Company operates a defined contribution pensions scheme for
(financial cost). The fair value of a forward currency contract is
measured in its contracted currency and translated to NOK using
the foreign exchange currency rate at the reporting date.
INTEREST RATE SWAPS
Interest rate swap contracts are measured according to the
its employees. The pension premium is paid through operations
lowest of its acquisition cost and fair value at the reporting date.
and is expensed on an ongoing basis. Social security costs are
charged based on the pension premium paid.
GROUP ACCOUNT SCHEME – DEPOSITS AND
LOANS
Grieg Seafood ASA operates as an internal bank for its
TAXES
The tax expense in the income statement consists of both tax
payable for the accounting period and changes in deferred tax.
Deferred tax is calculated at the relevant rate on temporary
differences between the value of assets and liabilities for
subsidiaries. Grieg Seafood ASA borrows funds from financial
tax purposes and any allowable loss to be carried forward at
institutions and then lends these funds to its subsidiaries. The
year-end in the financial statements. Temporary differences,
Company has set up two multi-currency group account (cash
both positive and negative, are offset within the same period.
pool) schemes in which Grieg Seafood ASA is the legal account
Deferred tax assets are recognized in the statement of financial
holder. Deposits and loans from/to the subsidiaries, which
position when it is more likely than not that the tax assets will
are part of the cash pool, are recognized as intercompany
be utilized. Deferred tax assets and deferred tax liabilities are
transactions. All subsidiaries that are part of the cash pool (not
presented net in the statement of financial position. Tax on group
all subsidiaries of the Group are part of the cash pool) are jointly
contributions is recognized as an increase in the purchase price
and severally liable to the financial institutions for the entire
of shares in other companies. Taxes payable and deferred taxes
amount of the commitment under the scheme.
are recognized directly in equity to the extent that they relate
FOREIGN CURRENCY
The Company’s functional and presentational currency is the
Norwegian Krone (NOK). Monetary items in a foreign currency
are translated into NOK using the exchange rate applicable on
the reporting date. Non-monetary items that are measured
to equity transactions (offset against tax payable if the group
contribution affects tax payable and offset against deferred taxes
if the group contribution affects deferred taxes).
CASH FLOW STATEMENT
The cash flow statement has been prepared according to the
at their historical price expressed in a foreign currency are
indirect method. Cash and cash equivalents include cash, bank
translated into NOK using the exchange rate applicable on the
deposits and other short-term highly liquid investments which
transaction date. Non-monetary items that are measured at
entail no appreciable exchange rate risk, and which mature
their fair value expressed in a foreign currency are translated at
within three months of the purchase date.
the exchange rate applicable on the reporting date. Changes to
exchange rates are recognized in the income statement as they
occur during the accounting period.
PART 03 - OUR FINANCIAL RESULTS
127
NOTE 2 RELATED PARTIES
2023
NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
FINANCIAL
INCOME
FINANCIAL
EXPENSES
NON-
CURRENT
RECEIVABLES
TRADE
RECEIVABLES
CURRENT
RECEIVABLES
TRADE
PAYABLES
OTHER
CURRENT
LIABILITIES
Total related
parties – Group
companies
Total related
parties –
Shareholders
257 719
9 601
269 057
35 373
810 459
131 650
4 567 414
27 619
743 739
—
14 561
—
—
—
—
—
4
5 000
Total
257 719
24 162
269 057
35 373
810 459
131 650
4 567 414
27 623
748 739
2022
NOK 1 000
OPERATING
INCOME
OPERATING
EXPENSES
FINANCIAL
INCOME
FINANCIAL
EXPENSES
NON-
CURRENT
RECEIVABLES
TRADE
RECEIVABLES
CURRENT
RECEIVABLES
TRADE
PAYABLES
OTHER
CURRENT
LIABILITIES
Total related
parties – Group
companies
Total related
parties –
Shareholders
287 954
2 185
1 109 243
2 958
797 907
180 989
2 715 580
8 526
412 125
—
12 409
—
—
—
—
—
5 500
—
Total
287 954
14 594
1 109 243
2 958
797 907
180 989
2 715 580
14 026
412 125
See Note 13 for information on assets pledged as security for financial liabilities.
The company carries out, in the normal course of business, transactions with companies controlled by Grieg Maturitas II AS, which is
the parent company of Grieg Aqua AS, the majority owner of Grieg Seafood ASA. The ultimate parent company of Grieg Seafood ASA is
Grieg Maturitas AS, the parent company of Grieg Maturitas II AS. Grieg Maturitas II AS is headquartered in C. Sundts gate 17/19, Bergen,
Norway.
NOTE 3 OPERATING INCOME
OPERATING INCOME NOK 1 000
Administrative services – Group companies
Royalty fee - Group companies
Other operating income - Group companies
NOTE
2023
117 053
140 130
536
2022
141 622
146 332
—
Total operating income - group Group companies
2
257 719
287 954
Other operating income
Total operating income
418
258 137
61
288 015
NOTE 4 SALARIES, PERSONNEL AND OTHER OPERATING EXPENSES
SALARIES AND PERSONNEL EXPENSES NOK 1 000
Wages and salaries
Social security costs
Synthetic stock options for directors and key personnel (Note 14)
Pension costs – defined contribution scheme
Other personnel costs
Total
Average full time equivalents (FTE)
2023
53 995
9 384
1 584
2 561
17 346
84 870
39
2022
68 263
13 122
30 399
2 523
4 041
118 348
39
Consolidated financial statements, in which Grieg Seafood ASA is included, may be obtained from the parent company - in addition to
Grieg Seafood ASA also prepares its own consolidated financial statement for the Grieg Seafood Group.
PENSION SCHEME
The company has a defined contribution pension scheme covering all employees at 31 December 2023. The pension scheme is funded and
The transactions with Grieg Maturitas II AS and subsidiaries relate to ICT-related services and other functions such as catering,
reception, etc., are provided by Grieg Group Resources AS on an arm’s length basis. In addition, Grieg Seafood ASA rents its offices
from Grieg Gaarden AS on an arm’s length basis. The office rental agreement runs for a period of ten years. Lastly, Grieg Seafood ASA
purchases services from Grieg Investor AS.
Grieg Seafood ASA provides a range of services to the subsidiaries of the Grieg Seafood Group. The services include administrative
services performed on behalf of the subsidiaries of the Group. Grieg Seafood ASA is set up with facility agreements with external parties
incl. banks, and lend out funds to subsidiaries. Interest is charged on an arm's length basis. In addition, Grieg Seafood ASA engages
in hedge contracts on behalf of subsidiaries. The arrangement is intended to reduce these companies' exposure to salmon prices.
Agreements with the subsidiaries are priced on the basis of a "back-to-back" arrangement.
managed through an insurance company.
SHARE SAVINGS PLAN
Grieg Seafood established a share savings program for its employees in 2018, which has continued throughout 2023. Each year has its
own set of terms and conditions concerning how much each employee can invest in the program that year. In addition, each year has it’s
set of terms for the lock-up period. The participating employees buy shares on a discount. The discount is recognized as a cost in the
income statement and included as an other personnel cost as presented in the table above. The total costs related to the discount was
NOK 2.1 million in 2023 (NOK 2.1 million in 2022). The purchase price and the number of shares acquired by the company will be reported
in accordance with the applicable regulations.
At 31 December 2023, loan to employees related to the share savings program equals NOK 5.0 million (2022: NOK 4.9 million). The total
shares sold to employees was 107 473 in 2023 (2022: 96 150). See also Note 12.
MANAGEMENT REMUNERATION
The guidelines for management remuneration are available on Grieg Seafood ASA’s website. Not all members of the Grieg Seafood
Group Management Team is employed by Grieg Seafood ASA. For a specification of the remuneration to the Group’s Management Team,
see Note 7 of the Group Accounts. This Note provide the specification of remuneration of the members of the Group Management that is
employed by Grieg Seafood ASA.
PART 03 - OUR FINANCIAL RESULTS
128
1 187
16 473
BREAKDOWN OF AUDITOR'S FEES NOK 1 000
Statutory audit
Other certification services
Tax advisory fee
Other services
Total
REMUNERATION PAID TO BOARD MEMBERS IN 2022 NOK 1 000
Per Grieg1
Tore Holand2
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg
Ragnhild Fresvik (from 9 of June 2022)
Total remuneration
1 Payment for work performed on the Remuneration Committee of NOK 25 673 is included in the remuneration paid to Per Grieg and Marianne Ribe.
2 Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik, amounting to NOK 68 460.
The amounts include social security costs.
TOTAL
516
401
328
372
308
183
2 107
2022
1 063
783
—
26
2023
1 823
1 116
—
459
3 398
1 872
Other operating expenses
In February 2019, the European Commission launched an investigation to explore potential anti-competitive behavior in the in the market
for spot sales of fresh, whole and gutted Norwegian farmed Atlantic salmon. In January 2024, Grieg Seafood received a Statement of
Objections from the European Commission related to its investigation. See Note 17 concerning events after the balance sheet date of
2023.
Furthermore, three class-actions were filed in Canada (none has been certified as a class-action). Even though Grieg Seafood considers
the complaints to be entirely without merit, Grieg Seafood have agreed to a settlement offer from the plaintiffs and entered into a
respective settlement agreement in 22 September 2023 as the costs of litigation in Canada can be substantial. The settlement agreement
was approved by the Federal Court in February 2024. In 2022, incurred costs and provisions for expected costs related to the lawsuits in
North America in total of NOK 157 million were expensed, of which NOK 129 million were used at year end 2022. The remaining NOK 28
million were carried over to 2023. After the settlement related payment was made, the remainder of the accrual was released. The costs
are reported as “other operating expenses” in Grieg Seafood ASA. See also Note 10 of the Group Accounts.
REMUNERATION PAID TO MEMBERS OF GROUP
MANAGEMENT TEAM EMPLOYED BY GRIEG SEAFOOD
ASA IN 2023 NOK 1 000
SALARY
BONUS
RETAINED
BONUS,
NOT YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
OTHER
REMUNERATION
TOTAL
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Erik Holvik (Chief Commercial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen
(Chief Human Resource Officer)
Nina Stangeland (Chief Strategy Officer)
Kristina Furnes (Chief Communication Officer)
Total remuneration to member’s of Group
Management employed by Grieg Seafood ASA
4 003
2 885
2 435
2 259
1 833
524
1 348
15 286
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 14.
Nina Stangeland was appointed as Chief Strategy Officer in Q3 2023.
REMUNERATION PAID TO BOARD MEMBERS IN 2023 NOK 1 000
Per Grieg1
Tore Holand2
Marianne Ribe1
Katrine Trovik2
Nicolai Hafeld Grieg
Ragnhild Fresvik
Total remuneration
1 Payment for work performed on the Remuneration Committee of NOK 25 525 is included in the remuneration paid to Per Grieg and Marianne Ribe.
2 Payment for work performed on the Audit Committee is included in the remuneration paid to Tore Holand and Katrine Trovik, amounting to NOK 79 870.
The amounts include social security costs.
REMUNERATION PAID TO MEMBERS OF GROUP
MANAGEMENT TEAM EMPLOYED BY GRIEG SEAFOOD ASA
IN 2022 NOK 1 000
SALARY
BONUS
RETAINED
BONUS,
NOT YET PAID
OPTIONS
EXERCISED
DURING THE
YEAR
454
136
139
147
152
44
116
4 457
3 020
2 573
2 406
1 985
568
1 463
TOTAL
542
422
342
394
314
314
2 328
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
3 644
2 349
Alexander Knudsen (Chief Operating Officer Farming Europe)
2 066
Roy Tore Rikardsen (Chief Operating Officer Farming Canada
until 10 of June 2022)
Erik Holvik (Chief Commercial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen
(Chief Human Resource Officer)
Kristina Furnes (Chief Communication Officer)
1 802
2 247
2 098
1 631
1 229
1 007
612
321
-26
483
426
323
172
Total remuneration to member’s of Group Management
employed by Grieg Seafood ASA
17 067
3 318
—
—
—
—
—
—
—
—
—
OTHER
REMUNERATION*
TOTAL
2 954
12 144
120
332
47
123
131
133
108
6 282
5 637
4 740
5 923
5 538
4 296
3 282
4 540
3 202
2 917
2 917
3 070
2 883
2 209
1 773
23 509
3 948
47 842
*The CEO has in 2022 received a one-time payment in arrears for pension benefits.
Recognized expenses arising from synthetic options not declared throughout the year are not included in the above statement. See Note 14.
PART 03 - OUR FINANCIAL RESULTS
129
NOTE 5 FINANCIAL INCOME AND FINANCIAL EXPENSES
NOTE 6 INCOME TAXES
NOTE
2023
2022
BASIS FOR TAX PAYABLE NOK 1 000
FINANCIAL ITEMS NOK 1 000
FINANCIAL INCOME
Interest income from Group companies
Group contributions from subsidiaries
Unrealized currency change, non-current loans from Group companies
Realized currency change, non-current EUR term loan
Realized gain (loss) on investment in money market fund
Unrealized gain (loss) on investment in money market fund
Realized gain/loss on interest rate swap contracts
Unrealized gain/loss on interest rate swaps
Realized gain/loss on cross currency interest rate swap incl. option
Unrealized gains/losses FX contracts
Net realized currency gains
Net unrealized currency gains
Gain/loss sale of subsidiary
Other interest income
Other financial income
Total financial income
FINANCIAL EXPENSE
Loan interest expenses
Interest expense to Group companies
Realized currency change, non-current EUR term loan
Unrealized currency change, non-current EUR term loan
Unrealized gains/losses FX contracts
Other interest expenses
Other financial expenses
Total financial expense
Net financial items
PART 03 - OUR FINANCIAL RESULTS
2023
210 702
-10
9 536
—
—
-4 341
-63 166
—
152 721
—
152 721
33 599
152 721
-33 599
2022
1 015 743
-10
-1 118
-7 924
-12 624
20 426
90 227
-995 290
109 431
995 290
1 104 721
243 039
—
—
—
243 039
103 141
995 290
10 811
2 624
—
12 624
4 657
751
35 740
—
317
89 849
7 924
8 378
1 678
Profit before tax
Dividends recognized in profit or loss
Net other permanent differences
Other permanent differences from gain of sales of share
Unrealized of adjustments of investment in money funds
Change in financial derivatives
Change in temporary differences
Group contribution received/provided
Taxable income/loss
Group contribution - receivable
Basis for tax expense for the year
22% (22%) tax payable
Group contribution - liability
Tax of group contribution - liability
Tax payable after paid group contribution
256 505
—
12 552
—
41 461
-12 624
26 703
—
—
4 341
7 625
73 015
—
—
1 396
410 974
2
2
2
10
10
10
10
10
10
2
10
1 273 786
BREAKDOWN OF DEFERRED TAX BASIS NOK 1 000
CHANGE
2023
2022
189 196
134 897
35 373
11 298
41 430
—
5 214
2 708
2 958
—
58 396
21 178
188
3 562
285 218
221 178
125 756
1 052 608
TEMPORARY DIFFERENCES
Non-current assets
Profit and loss account
Provisions for liabilities
Cash-based options
Non-current debt/amortized cost
Discount bond loan
Net temporary differences
Basis for deferred tax in balance sheet
Deferred tax assets (-) /deferred tax liabilities (+) in the balance sheet
BREAKDOWN OF TAX CHARGE
Tax payable
Change in deferred tax, 22% (22%)
Tax effect of foreign tax not credited Norwegian tax
Tax expense in income statement
RECONCILIATION OF TAX EXPENSE
Profit before tax
Estimated tax 22% (22%)
Tax expense in income statement
Difference
THE DIFFERENCE CONSISTS OF THE FOLLOWING:
22% of permanent differences
Tax effect of foreign tax not credited Norwegian tax
Total reconciled difference
-7
-81
69 310
-1 584
-8 311
3 839
63 166
63 166
13 897
-3 699
325
—
-9 012
16 742
-5 700
-1 344
-1 344
-296
33 599
13 897
4 098
51 593
210 702
-46 354
51 593
5 239
1 141
4 098
5 239
-3 692
407
-69 310
-7 428
25 053
-9 539
-64 510
-64 510
-14 192
243 039
-24 343
2 971
221 666
1 015 743
-223 464
221 666
-1 797
-4 769
2 971
-1 797
130
NOTE 7 SOFTWARE, AND PROPERTY, PLANT AND EQUIPMENT
NOTE 8 INVESTMENTS IN SUBSIDIARIES
2023 NOK 1 000
Book value at 01.01.
Additions
Amortization/depreciation
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization/depreciation
Book value at 31.12.
Economic life (amortization/depreciation schedule)
2022 NOK 1 000
Book value at 01.01.
Additions
Amortization/depreciation
Book value at 31.12.
ACCUMULATED VALUES
Acquisition cost
Accumulated amortization/depreciation
Book value at 31.12.
Economic life (amortization/depreciation schedule)
SOFTWARE
OTHER
EQUIPMENT
8 357
1 592
-2 684
7 265
1 207
674
-672
1 209
56 471
18 599
-49 206
-17 390
7 265
1 209
3 - 10 years
3–5 years
SOFTWARE
OTHER
EQUIPMENT
10 737
2 581
-4 961
8 357
2 571
659
-2 023
1 207
54 879
20 173
-46 522
-18 965
8 357
1 207
3 - 10 years
3–5 years
See Note 13 for information on assets pledged as security for financial liabilities.
The company has operating lease agreements, which are not recognized in the statement of financial position:
2023
ASSETS
Buildings
Other equipment
Total lease amount charged
DURATION
Until 2028
3-5 years
OPERATING LEASE
EXPENSE
4 597
34
4 632
SUBSIDIARY
Grieg Seafood Rogaland AS
Grieg Seafood Canada AS
Grieg Seafood Finnmark AS
Grieg Seafood Sales AS
Grieg Seafood Newfoundland AS
Total
REGISTERED
OFFICE
COUNTRY
REGISTERED
OFFICE
LOCATION
OWNERSHIP/
VOTING
SHARE
EQUITY AT
31.12.2023
NOK 1 000
PROFIT/
LOSS 2023
NOK 1 000
BOOK VALUE
NOK 1 000
Norway
Bergen
100 %
1 540 666
581 358
Norway
Bergen
100 %
227 361
Norway
Alta
100 %
1 759 215
Norway
Bergen
Norway
Bergen
100 %
99 %
134 387
158 926
-10
591 629
151 456
223 497
297 112
519 603
1 000
20 677
981 319
3 820 555
1 345 110
2 022 531
Equity and profit/loss are based on provisional financial statements, which have been prepared in accordance with local accounting standards.
See Note 13 for information on assets pledged as security for financial liabilities.
NOTE 9 OTHER CURRENT RECEIVABLES
OTHER CURRENT RECEIVABLES NOK 1 000
Prepaid expenses
VAT *
Estimated remaining purchase price for the sale of Shetland **
Other current receivables
Total other current receivables
2023
6 980
1 797
—
1 667
10 445
2022
6 600
2 934
7 624
1 123
18 281
*Grieg Seafood ASA is the parent company in jointly registered VAT for the Norwegian entities of the Grieg Seafood Group.
**Grieg Seafood sold its shares in Grieg Seafood Shetland UK Ltd in 2021. As at year-end 2022, the company included an estimate concerning the remaining settlement price, of which
was settled in full in 2023.
PART 03 - OUR FINANCIAL RESULTS
131
NOTE 10 SHORT-TERM INVESTMENTS AND DERIVATIVES
NOTE 11 CASH AND CASH EQUIVALENTS
SHORT-TERM INVESTMENTS AND FINANCIAL INSTRUMENTS NOK 1 000
Investment in money market funds including unrealized gain*
Foreign exchange contracts
Other financial assets
Total
2023
—
4 341
566
4 908
2022
1 012 848
—
566
1 013 415
CASH AND CASH EQUIVALENTS NOK 1 000
Restricted deposits relating to employees' tax deductions
Other bank deposits
Total
2023
1 000
26 194
27 194
2022
1 000
523 823
524 823
The Company has two multi-currency group account scheme (cash pool agreement), in which Grieg Seafood ASA, the parent company of
the Group, is the legal account holder. One of the cash-pool agreements do have a multi-currency overdraft facility of NOK 200 million,
which is utilized with NOK 63 million at year-end 2023. See Note 13 for more information. The subsidiaries that are part of the agreement
can utilize the group cash pool arrangement provided that the arrangement without overdraft cannot be net negative, and that the
arrangement with overdraft facility can not exceed negative NOK 200 million. Not all subsidiaries are part of the cash pool arrangement.
The subsidiaries participating in the group account scheme are jointly and severally liable for the entire amount of the commitment
under the scheme. Cash and cash equivalents include the currency exposure in the group account scheme. At 31 December 2023, the net
amount of bank deposits in the group account scheme amounted to NOK 26 million (2022: NOK 524 million). At the same time, unutilized
overdraft facility was NOK 137 million (NOK 200 million), in addition to unutilized revolving credit facility of NOK 750 million (NOK 1 500
million).
See Note 16 concerning guarantee for employee advance tax deduction.
See Note 13 for information on the company's credit facility and drawdown as at year-end 2023.
*In 2022, the company temporarily placed surplus liquidity funds in money market funds. The company did not invest directly in bonds or securities, but through units in established
money market funds. At year-end 2023, the investment in money market funds has been exited in full.
FINANCIAL DERIVATIVE INSTRUMENTS
FAIR VALUE
BOOK VALUE
FAIR VALUE
BOOK VALUE
2023
2022
Interest rate options
Interest rate swap contracts*
Financial derivative instruments classified as current assets
Financial derivative instruments classified as current liabilities
Financial instruments booked at fair value in according to accounting act § 5-8.
*See specification below.
4 341
23 312
27 653
—
4 341
—
4 341
—
—
35 238
35 238
—
—
—
—
—
SPECIFICATION ON INTEREST RATE SWAP
PRINCIPAL
NOK 1 000
FIXED
RATE (%)
BASIS OF
FLOATING RATE
MATURITY
MARKET VALUE
NOK 1 000
31.12.2023
MARKET VALUE
NOK 1 000
31.12.2022
Fixed rate paid - floating rate received
NOK 200 million
1.61
Nibor 3 months
28.08.2023
Fixed rate paid - floating rate received
NOK 200 million
1.35
Nibor 3 months
04.03.2024
Fixed rate paid - floating rate received
NOK 200 million
1.07
Nibor 3 months
05.07.2024
Fixed rate paid - floating rate received
NOK 200 million
0.71
Nibor 3 months
18.12.2024
Fixed rate paid - floating rate received
NOK 200 million
0.72
Nibor 3 months
18.12.2024
Fixed rate paid - floating rate received
NOK 200 million
3.16
Nibor 3 months
30.08.2027
—
1 677
5 391
7 187
7 181
1 875
2 670
5 018
7 627
9 963
9 961
—
Total
23 312
35 238
CHANGES IN FINANCIAL INSTRUMENTS RECOGNIZED AS FINANCIAL ITEMS NOK 1 000
NOTE
Unrealized gain/loss on interest rate swaps
Unrealized gain/loss on foreign currency contracts
Unrealized gain on money market funds
Net unrealized gain/(loss) on financial instruments
Realized gain/loss on interest rate swap contracts
Realized gain/loss on cross-currency interest rate swap contract incl option
Realized gain/loss on investment in money market funds
Net realized gain/(loss) on financial instruments
5
5
5
5
5
5
2023
—
4 341
-12 624
-8 283
26 703
—
41 461
68 164
2022
751
-21 178
12 624
-7 803
4 657
35 740
—
40 397
The company is exposed to a number of financial risks; market risk (including foreign exchange risk, interest rate risk and price risk),
credit risk and liquidity risk. The company’s overall risk management program focuses on the volatility of the financial markets and
seeks to minimize potential adverse effects on the company’s financial performance. The company uses financial derivatives to reduce
certain risks. The Board has established written principles for the management of foreign exchange risk, interest rate risk and use of the
company´s financial instruments.
PART 03 - OUR FINANCIAL RESULTS
132
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
OM Holding AS
Folketrygdfondet
Ystholmen Felles AS
State Street Bank and Trust Comp (Nominee)
State Street Bank and Trust Comp (Nominee)
Morgan Stanley & Co. Int. Plc. (Nominee)
Clearstream Banking S.A. (Nominee)
Grieg Seafood ASA
JPMorgan Chase Bank, N.A., London (Nominee)
Gåsø Næringsutvikling AS
Kvasshøgdi AS
Ferd AS
State Street Bank and Trust Comp (Nominee)
DZ Privatbank S.A. (Nominee)
J.P. Morgan SE (Nominee)
Danske Invest Norge Vekst
Six Sis AG (Nominee)
J.P. Morgan SE (Nominee)
DNB Bank ASA (Broker)
Total 20 largest shareholders
Other shareholders
Total shares
NOTE 12 SHARE CAPITAL AND SHAREHOLDER INFORMATION
As at 31 December 2023, the company had 113 447 042 shares with a nominal value of NOK 4 per share. All shares issued by the company
are fully paid-up. There is one class of shares and all shares confer the same rights.
SHARE CAPITAL AND NUMBER OF SHARES
31.12.2023
NOMINAL VALUE
PER SHARE (NOK)
TOTAL SHARE CAPITAL NOK 1 000
NO. OF ORDINARY SHARES
Total
Holdings of treasury shares
Total excl treasury shares
4.00
4.00
4.00
453 788
-5 255
448 533
113 447 042
1 313 654
112 133 388
Treasury shares
Grieg Seafood ASA hold treasury shares in connection to its share saving program for employees. The latest sale of treasury shares
from the company to employees was in December 2023, as 107 473 treasury shares was sold through the share saving program. As at
31 December 2023, the company has 1 313 654 treasury shares.
In 2022, 96 150 shares was sold to employees through the share savings program at an average price of NOK 71.10. In December 2022,
Grieg Seafood purchased 385 000 shares at a weighted average price of NOK 77.76 per share of which 314 980 has been settled within
year-end 2022 and the remainder was settled in January 2023.
THE LARGEST SHAREHOLDERS IN GRIEG SEAFOOD ASA
Grieg Aqua AS
OM Holding AS
Folketrygdfondet
Ystholmen Felles AS
Clearstream Banking S.A. (Nominee)
State Street Bank and Trust Comp (Nominee)
State Street Bank and Trust Comp (Nominee)
Grieg Seafood ASA
BNP Paribas (Nominee)
JPMorgan Chase Bank, N.A., London (Nominee)
Sparebank 1 Markets AS
Frøy Kapital AS
J.P. Morgan SE (Nominee)
State Street Bank and Trust Comp (Nominee)
Kvasshøgdi AS
Bank Pictet & Cie (Europe) AG (Nominee)
Six Sis AG (Nominee)
BNP Paribas (Nominee)
Skandinaviska Enskilda Banken AB (Nominee)
State Street Bank and Trust Comp (Nominee)
Total 20 largest shareholders
Total others
Total number of shares
PART 03 - OUR FINANCIAL RESULTS
NO. OF SHARES
SHAREHOLDING
31.12.2023
31.12.2023
56 914 355
50.17%
5 160 982
2 419 585
1 923 197
1 615 271
1 512 715
1 435 586
1 313 654
1 192 532
1 171 727
1 159 872
1 116 323
1 105 349
1 078 185
996 772
921 918
853 102
842 579
800 350
753 837
4.55%
2.13%
1.70%
1.42%
1.33%
1.27%
1.16%
1.05%
1.03%
1.02%
0.98%
0.97%
0.95%
0.88%
0.81%
0.75%
0.74%
0.71%
0.66%
84 287 891
29 159 151
113 447 042
74.30%
25.70%
100.00%
NO. OF SHARES
SHAREHOLDING
31.12.2022
31.12.2022
56 914 355
50.17%
5 110 982
2 939 985
1 923 197
1 717 439
1 692 877
1 470 346
1 376 622
1 351 811
1 136 470
1 116 323
996 772
924 407
724 407
698 518
687 236
540 000
534 229
526 442
482 561
4.51%
2.59%
1.70%
1.51%
1.49%
1.30%
1.21%
1.19%
1.00%
0.98%
0.88%
0.81%
0.64%
0.62%
0.61%
0.48%
0.47%
0.46%
0.43%
82 864 979
30 582 063
73.04%
26.96%
113 447 042
100.00%
133
SHARES CONTROLLED DIRECTLY AND INDIRECTLY BY THE BOARD OF
DIRECTORS AND GROUP MANAGEMENT
31.12.2023
31.12.2023
31.12.2022
31.12.2022
NO. OF SHARES
SHAREHOLDING
NO. OF SHARES
SHAREHOLDING
NOTE 13 NET INTEREST-BEARING LIABILITIES AND PLEDGES
BOARD OF DIRECTORS
Per Grieg *
Tore Holand **
Marianne Ribe
Katrine Trovik
Nicolai Hafeld Grieg *
Ragnhild Janbu Fresvik (board member from 9 June 2022)
GROUP MANAGEMENT
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Alexander Knudsen (Chief Operating Officer Farming Norway)
Grant Cumming (Chief Operating Officer Farming Canada)***
Erik Holvik (Chief Commercial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen (Chief Human Resource Officer)
Nina Stangeland (Chief Strategy Officer)***
Kristina Furnes (Chief Communications Officer)
2 877 206
3 160
—
—
2 117 289
—
44 372
28 015
24 272
9 857
11 135
25 614
15 833
—
5 167
2.54%
0.00%
—%
—%
1.87%
—%
0.04%
0.02%
0.02%
0.01%
0.01%
0.02%
0.01%
—%
0.00%
2 877 206
2 000
—
—
2 117 289
—
40 513
25 556
23 513
NA
8 831
24 855
15 074
NA
4 711
2.54%
0.00%
—%
—%
1.87%
—%
0.04%
0.02%
0.02%
NA
0.01%
0.02%
0.01%
NA
0.00%
*Per Grieg and Nicolai Hafeld Grieg both own indirectly in Grieg Seafood ASA through their indirect ownership in Grieg Maturitas II AS (see Note 1 of the Group Accounts). Grieg
Maturitas II AS owns 100% of Grieg Aqua AS, which is the largest shareholder in Grieg Seafood ASA representing 50.17% of the shares. Additionally, both Per Grieg and Nicolai Hafeld
Grieg is represented in the Board of Directors of Grieg Maturitas II AS. Together, Per Grieg and Nicolai Hafeld Grieg therefore represents, through their indirect ownership and board
representation in Grieg Maturitas II AS, 50.17% of the shares in Grieg Seafood ASA through Grieg Aqua AS. Additionally, Per Grieg has further ownership interests in Grieg Seafood ASA
through shares invested privately and through Kvasshøgdi AS, bringing the total percentage of shares in Grieg Seafood ASA represented by Per Grieg to 51.06%.
**Tore Holand owns shares in Grieg Seafood ASA through shares invested in Skippergata 24 AS as well as shares invested privately.
***Grant Cumming and Nina Stangeland was appointed to Group Management in 2023.
PART 03 - OUR FINANCIAL RESULTS
Grieg Seafood ASA has a syndicated, secured loan provided by DNB and Nordea. The syndicated financing consists of an aggregate
of NOK 3 200 million in five-year senior secured sustainability-linked loans and credit facilities with maturity date in 2027. The debt
structure comprises a NOK 750 million term loan (outstanding NOK 656 million), an EUR 75 million term loan (outstanding EUR 66
million), a NOK 1 500 million revolving credit facility and a NOK 200 million overdraft facility. As at the end of 2023, the company has NOK
887 million (NOK 1 700 million) available on the revolving credit facility and overdraft facility. The revolving credit facilities are non-
current and may be redrawn. Of the syndicated debt, NOK 133 million is installments due the next 12 months from the reporting date. The
financing carries floating interest rates, calculated as the relevant three month IBOR plus the applicable margin per interest period. The
financial covenant of the facility is a minimum equity ratio requirement of 31%, measured excl. the effect of IFRS 16.
In addition to the senior secured facility, the company also has a green bond (GSF01 G, listed at Euronext), which matures in June 2025.
The outstanding amount of the bond loan was NOK 1 393 million at the end of 2023. The total bond issue in 2020 was NOK 1 500 million,
and since the bond issue, Grieg Seafood has repurchased NOK 107 million. The bond carries a coupon rate of three months NIBOR + 3.4%
p.a. The bond's financial covenant is an equity ratio requirement of minimum 30% for the consolidated Grieg Seafood Group, measured
consistent with the Group’s equity ratio financial covenants as defined in its syndicated loan agreement with secured lenders.
Grieg Seafood ASA was in compliance with its financial covenant at 31 December 2023. At 31 December 2023, the Group had an equity
ratio of 49% (2022: 50%) while the equity ratio according to financial covenant was 53%, compared to 52% at 31 December 2022.
NON-CURRENT LIABILITIES NOK 1 000
NON-CURRENT LIABILITIES (INTEREST-BEARING)
Green bond loan
Non-current syndicated term-loan
Non-current syndicated revolving credit facility
Total non-current interest-bearing liabilities
Amortization effect of loans*
Total non-current liabilities
*Amortization effect on green bond loan and non-current syndicated term-loan.
CURRENT INTEREST-BEARING LIABILITIES NOK 1 000
Current portion of non-current syndicated term-loan
Overdraft facility*
Total current interest-bearing liabilities
2023
2022
1 392 500
1 261 155
750 000
1 423 500
1 346 218
—
3 403 655
2 769 718
-16 742
-25 053
3 386 913
2 744 665
2023
132 753
63 113
195 866
2022
128 211
—
128 211
*The Company has two multi-currency cash pool schemes, held at two different banks. One of the cash pool schemes has a multi-currency overdraft facility of NOK 200 million. As at
year-end 31.12.2023, the cash pool scheme with the overdraft engagement had a net negative cash position, classified as overdraft facility at year-end. For more information on the
Group's cash and cash equivalents, see Note 11.
NET INTEREST-BEARING LIABILITIES NOK 1 000
Gross interest-bearing liabilities
Loans to subsidiaries
Investments in money market funds
Cash and cash equivalents
Net interest-bearing liabilities
Loans to subsidiaries, investment in money market funds and cash and cash equivalents are presented by their inverted figure in the table above.
2023
2022
3 599 521
2 897 929
-5 331 016
-2 420 009
—
-1 012 848
-26 194
-523 823
-1 757 689
-1 058 750
134
MATURITY PROFILE
INTEREST-BEARING LIABILITIES NOK 1 000
Green bond loan
Syndicated term-loan
Syndicated revolver credit facility
Overdraft facility
Total
31.12.2023
2024
2025
2026
2027
2028
LATER
TOTAL
—
1 392 500
—
—
132 753
132 753
132 753
995 648
—
63 113
—
—
—
—
750 000
—
195 866
1 525 253
132 753
1 745 648
—
—
—
—
—
—
—
—
—
1 392 500
1 393 908
750 000
63 113
— 3 599 521
MATURITY PROFILE
INTEREST-BEARING LIABILITIES NOK 1 000
Green bond loan
Syndicated term-loan
Total
31.12.2022
2023
2024
2025
2026
2027
LATER
TOTAL
—
—
1 423 500
—
—
128 211
128 211
128 211
128 211
961 584
—
—
1 423 500
1 474 429
128 211
128 211
1 551 711
128 211
961 584
— 2 897 929
Figures included in the maturity profile tables are nominal figures. Amortized cost is not included.
LIABILITIES SECURED BY MORTGAGE NOK 1 000
BOOK VALUE OF LIABILITIES SECURED BY MORTGAGE
Liabilities to credit institutions
Total liabilities
BOOK VALUE OF ASSETS PLEDGED AS SECURITY
Shares in subsidiaries
Property, plant and equipment
Trade receivables
Loans to subsidiaries*
Total assets pledged as security
2023
2022
2 143 908
2 143 908
1 474 429
1 474 429
2 022 531
1 903 409
1 209
131 650
5 331 016
7 486 406
1 207
180 989
2 420 009
4 505 613
*The subsidiaries and the parent company have a joint and several liability against the credit institutions. See the consolidated financial statements Note 27 for further information
about liabilities secured by mortgage.
CURRENCY EXPOSURE ON LOANS TO CREDIT
INSTITUTIONS NOK 1 000
31.12.2023
NOK
CAD
Green bond loan
Syndicated term-loan
1 392 500
1 392 500
1 393 908
656 250
Syndicated revolving credit facility
750 000
750 000
—
—
—
EUR
—
737 658
—
Overdraft facility
Total
63 113
79 924
140 824
(87 393)
(52 476)
(16 068)
3 599 521
2 878 674
140 824
650 265
(52 476)
(16 068)
USD
GBP
OTHER
—
—
—
—
—
—
—
—
—
(1 698)
(1 698)
CURRENCY EXPOSURE ON LOANS TO CREDIT
INSTITUTIONS NOK 1 000
31.12.2022
NOK
CAD
Green bond loan
Syndicated term-loan
Total
1 423 500
1 423 500
1 474 429
718 750
2 897 929
2 142 250
—
—
—
EUR
—
755 679
755 679
AVERAGE INTEREST RATE ON BANK AND BOND LOAN
Average interest rate (NOK)
Average interest rate (EUR)
The effect of interest rate swaps is not taken into account in calculating the average interest rate on borrowings and credit facilities.
USD
GBP
OTHER
—
—
—
—
—
—
2023
6.62%
4.15%
—
—
—
2022
4.61%
1.77%
NOTE 14 SHARE-BASED PAYMENTS
Grieg Seafood ASA operates a share-based remuneration scheme with settlement in cash for the management team of the Group.
Members of the management team not employed in Grieg Seafood ASA are also included in the option program. The options’ strike price
is the stock market price on the date of issue, rising by 0.5% per month until the exercise date. The most recent allocation was in 2023,
totalling 2 680 000 options. The final exercise date is 31 May 2026. The options have a term of two years, where 50% is vested each year.
Employees taken on after the initial allocation of options are allocated options on taking up employment.
The value of the synthetic stock options settles in cash is recognized as a salary and personnel cost in income statement (see Note 4) and
TYPE OF LIABILITY NOK 1 000
CURRENCY
INTEREST
RATE
MATURITY
CURRENT
PART
NON-
CURRENT
PART
CURRENT
PART
NON-
CURRENT
PART
The cost of the executive management synthetic option scheme is expensed over the average vesting period. The liability is measured at
fair value at each balance sheet date until settlement, and changes in the fair value are recognized in profit and loss. Social security tax
2023
2022
as a liability in the statement of financial position.
Floating
06/2025
—
1 392 500
—
1 423 500
on options is recorded as a liability and is recognized over the estimated vesting period.
Green bond loan
Syndicated term-loan
Syndicated term-loan
Syndicated revolving credit facility
Overdraft facility
Total
NOK
NOK
EUR
NOK
Floating
03/2027
Floating
03/2027
Floating
03/2027
Multiple
Floating
62 500
70 253
—
63 113
593 750
667 405
750 000
—
62 500
65 711
—
—
656 250
689 968
—
—
195 866
3 403 655
128 211
2 769 718
The Black and Scholes option pricing model is used for valuation. A brokerage firm is used to perform the fair value calculation. The table
below shows the movement in outstanding options in 2023 and 2022.
PART 03 - OUR FINANCIAL RESULTS
135
OVERVIEW 2023
(TOTAL OPTIONS)
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen (Chief Human Resource Officer)
Kristina Furnes (Chief Communication Officer)
Alexander Knudsen (Chief Operating Officer Farming
Norway)
Grant Cumming (Chief Operating Officer Farming Canada)
Erik Holvik (Chief Commercial Officer)
Nina Stangeland (Chief Strategy Officer)
OUTSTANDING
OPTIONS AT
31.12.2022
229 764
80 799
88 302
49 011
39 262
86 832
—
65 788
—
380 000
250 000
100 000
100 000
100 000
170 000
170 000
170 000
100 000
135 260
775 016
1 140 000
2 680 000
Others
Total
OVERVIEW 2022
(TOTAL OPTIONS)
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2023
—
—
—
—
—
—
—
—
—
—
—
59 764
—
3 302
—
—
1 832
—
—
—
—
550 000
330 799
185 000
149 011
139 262
255 000
170 000
235 788
100 000
1 275 257
64 898
3 390 118
OUTSTANDING
OPTIONS AT
31.12.2021
GRANTED
OPTIONS
EXERCISED
OPTIONS
EXPIRED/
CANCELLED
OPTIONS
OUTSTANDING
CASH-SETTLED
OPTIONS AT
31.12.2022
Andreas Kvame (Chief Executive Officer)
Atle Harald Sandtorv (Chief Financial Officer)
Knut Utheim (Chief Technology Officer)
Kathleen O. Mathisen (Chief Human Resource Officer)
Kristina Furnes (Chief Communication Officer)
Alexander Knudsen (Chief Operating Officer Farming
Norway)
Roy Tore Rikardsen (Chief Operating Officer Farming
Canada)
Erik Holvik (Chief Commercial Officer)
Others
Total
540 000
270 000
270 000
200 000
100 000
270 000
270 000
170 000
600 000
2 690 000
ALLOCATION:
YEAR - MONTH
EXPIRY DATE:
YEAR - MONTH
STRIKE PRICE NOK
PER SHARE AT
31.12.2023
STRIKE PRICE NOK
PER SHARE AT
31.12.2022
2020 - 12
2020 - 12
2023 - 12
2023 - 12
Total
2023 - 05
2024 - 05
2026 - 05
2027 - 05
—
94.03
79.20
79.20
83.82
94.03
na
na
Cash-based options available for settlement
Weighted average exercise price on outstanding options (NOK per option)
—
—
—
—
—
—
—
—
—
—
310 236
189 201
181 698
150 989
60 738
183 168
183 168
104 212
416 863
1 780 273
—
—
—
—
—
—
86 832
—
47 877
134 709
229 764
80 799
88 302
49 011
39 262
86 832
—
65 788
135 260
775 016
OUTSTANDING OPTIONS
TOTAL
OUTSTANDING OPTIONS
VESTED
2023
—
2022
64 898
2023
—
2022
64 898
710 118
710 118
710 118
710 118
1 340 000
1 340 000
—
—
—
—
—
—
3 390 118
775 016
710 118
775 016
2023
2022
3 390 118
775 016
76.56
78.96
PART 03 - OUR FINANCIAL RESULTS
NOK/OPTION
AMOUNTS IN NOK 1 000
LISTED
PRICE ON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL VALUE
OF ALL
OPTIONS AT
01.01.2023
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION 2023
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2023
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2023
2023
Former employees with
expired options**
Andreas Kvame (Chief
Executive Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Kristina Furnes (Chief
Communication Officer)
Alexander Knudsen (Chief
Operating Officer Farming
Norway)
Erik Holvik (Chief Commercial
Officer)
Other options allocated in 2020
Andreas Kvame (Chief
Executive Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Kristina Furnes (Chief
Communication Officer)
Alexander Knudsen (COO
Farming Norway)
Alexander Knudsen (Chief
Operating Officer Farming
Norway)
Erik Holvik (Chief Commercial
Officer)
Nina Stangeland (Chief
Strategy Officer)
Other options allocated in 2023
Total
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
75.93
75.93
75.93
75.93
75.93
75.93
75.93
75.93
75.93
75.93
—
4.35
6.34
5.82
7.20
6.04
5.87
6.13
7.04
4.29
4.22
7.97
6.53
5.26
5.43
5.95
5.30
6.24
5.28
—
—
—
1 480
1 652
-1 488
1 078
989
720
604
999
1 042
3 519
1 632
1 055
797
653
526
923
1 011
901
624
5 227
669
663
442
354
654
606
-589
-579
-392
-316
-570
-542
1 469
-1 334
—
—
—
—
—
—
—
—
—
—
803
519
390
320
258
453
497
443
306
2 877
1 056
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
6 887
*Amounts exclude social security costs.
**The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in cash.
23 777
6 510
—
163
81
84
50
39
84
65
135
803
519
390
320
258
453
497
443
306
2 877
7 566
136
NOK/OPTION
AMOUNTS IN NOK 1 000
LISTED
PRICEON
ALLOCATION
CALCULATED
VALUE PER
OPTION ON
ALLOCATION
CALCULATED
TOTAL
VALUE ON
ALLOCATION *
TOTAL VALUE
OF ALL
OPTIONS AT
01.01.2022
CHANGE IN
PROVISION
CB-OB*
EXERCISED
OPTION 2022
ACC. COST
RECOGNIZED
IN EQUITY AT
31.12.2022
RECOGNIZED
LIABILITY
CASH
SETTLEMENT
AT 31.12.2022
RECOGNIZED LIABILITY, COSTS AND KEY ESTIMATES USED FOR THE FAIR VALUE CALCULATION
OF OPTIONS
As at 31 December 2023, fair value of outstanding options with the right to cash settlement were NOK 8 million (NOK 7 million). In
addition, social security costs is included in the recognized liability in the statement of financial position, which totaled NOK 1.4 million
(NOK 0.9 million) bringing the total recognized liability to NOK 9.0 million (NOK 7.4 million). See the table below for specification of the
—
—
—
—
6 887
—
liability as per the balance sheet date.
2022
Former employees with
expired options**
Andreas Kvame (Chief
Executive Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Kristina Furnes (Chief
Communication Officer)
Alexander Knudsen (COO
Farming Norway)
Roy Tore Rikardsen (COO
Farming Canada)
Erik Holvik (Chief Commercial
Officer)
Other options allocated in 2020
Andreas Kvame (Chief
Executive Officer)
Atle Harald Sandtorv (Chief
Financial Officer)
Knut Utheim (Chief Technology
Officer)
Kathleen O. Mathisen (Chief
Human Resource Officer)
Other options allocated in 2017
Total
—
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
78.96
83.00
83.00
83.00
83.00
83.00
—
4.35
6.34
5.82
7.20
6.04
5.87
5.87
6.13
7.04
2.26
2.79
2.79
2.38
2.35
1 480
1 408
244
2 541
1 078
989
720
604
999
999
1 042
3 519
906
557
557
475
1 880
-240
2 202
-177
1 883
-158
1 210
-157
1 773
-193
1 917
-847
1 917
909
840
600
511
847
847
881
-274
2 921
-1 451
7
4
4
4
11
-7
-4
-4
-4
-11
3 070
9 628
1 999
999
999
999
2 998
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1 652
669
663
442
354
654
—
606
1 469
—
—
—
—
—
15 802
9 792
-3 283
34 135
6 887
6 510
*Amounts exclude social security costs.
**The option category for the line item “Former employees with expired contracts” is equity options. All the other options in this table are options with settlement in cash.
FAIR VALUE OF SYNTHETIC
OPTIONS
SOCIAL SECURITY COSTS
TOTAL RECOGNIZED LIABILITY
RECOGNIZED LIABILITY IN THE STATEMENT OF
FINANCIAL POSITION NOK 1 000
Non-current liabilities
Current liabilities
Total
2023
6 867
700
7 566
2022
5 921
589
6 510
2023
1 312
134
1 445
2022
835
83
918
2023
8 178
833
9 012
2022
6 756
672
7 428
COSTS RELATED TO CASH OPTIONS NOK 1 000
Change in provisions
Exercised options during the year
Total cost excl. social security costs
Social security costs
Total cost incl. social security costs
2023
1 056
2022 CLASSIFICATION IN FINANCIAL STATEMENTS
-3 282 Other provisions for liabilities
—
34 137 Salaries and personnel expense / cash
1 056
527
1 584
30 855
-456 Public taxes payable
30 399 Salaries and personnel expense
The total cost incl. social security costs in 2023 totaled NOK 1.6 million (2022: NOK 30.4 million). These costs are recognized in the
income statement as an other personnel cost (see Note 4). Social security contributions are provided for on an ongoing basis based on the
fair value of the options.
ESTIMATES USED TO CALCULATE ALLOCATION OF OPTIONS
Anticipated volatility (%)
Risk-free rate of interest (%)
Estimated qualification period (years)
2023
45.63%
4.00%
2.33
2022
58.29%
3.12%
1.11
The estimated qualification period for the options is based on historical data, and does not necessarily represent future developments. In order to estimate volatility, management has
applied historical volatility for comparable listed companies.
PART 03 - OUR FINANCIAL RESULTS
137
NOTE 15 OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES NOK 1 000
Accrued interest
Other accrued expenses1
Other current liabilities2
Total other current liabilities
2023
5 286
22 686
22
27 993
2022
1 977
43 710
58 728
104 414
1Includes a liability related to a realized loss on fixed-price contracts of NOK 8 million (NOK 31 million).
2The 2022-figure includes NOK 25 million related to repurchased bonds. The repurchase was finalized in 2022 but settled in cash in 2023. In addition, NOK 28 million related to litigation
and claims is accrued at year-end 2022. As at year-end 2023, no such items where present in the balance sheet of Grieg Seafood ASA.
NOTE 16 GUARANTEES
Grieg Seafood ASA has a guarantee relating to employees’ tax deductions on total NOK 4.4 million (6.0 million) at the end of 2023. Grieg
Seafood ASA acted as a guarantor for Fiskehav SA. Total amount is NOK 7 million. The guarantee expires 9 September 2024.
NOTE 17 EVENTS AFTER THE REPORTING DATE
On 25 January 2024, Grieg Seafood received a Statement of Objections (SO) from the European Commission related to its investigation
of potential anti-competitive behavior regarding the sale of farmed Norwegian Atlantic salmon which was launched back in 2019. The
issuance of a SO is a common and formal step in the process without prejudice of the final outcome, where the European Commission
sets out its preliminary view in the matter.
On 9 February 2024, the Federal Court in Canada approved the settlement agreement dated 22 September 2023 entered into by the
plaintiffs and Grieg Seafood regarding the proposed three class-actions in Canada.
On 13 and 14 February 2024, Grieg Seafood ASA and Grieg Seafood UK Limited have received a service letter according to which certain
claimants filed a claim for damages against, among other, Grieg Seafood ASA and Grieg Seafood UK Limited arising from alleged
unlawful cartel arrangements in relation to the supply of farmed Atlantic salmon.
In general, Grieg Seafood denies any anti-competitive conduct whether it is in regard to the European Commission’ investigation, the
claim filed in the UK or any possible future claims related to this matter subsequent to the issuance of the SO. Therefore, no provision
has been recognized at the current stage. We will continue to collaborate with the European Commission and follow up all processes as it
deems appropriate.
There have not been any other significant events after the balance sheet date of 31 December 2023.
138
PART 03 - OUR FINANCIAL RESULTS PART 03 - OUR FINANCIAL RESULTS
139
PART 03 - OUR FINANCIAL RESULTS
140
PART 03 - OUR FINANCIAL RESULTS
141
ALTERNATIVE PERFORMANCE MEASURES
We believe that our financial statements only partially reflect the underlying performance of our operations, and as such some of the
financial information presented in the Annual Report 2023 contains alternative performance measures (APM). The APMs represented
are important key performance indicators for how the management of Grieg Seafood monitors operational and financial performance
on regional and group level. Therefore, we believe that the APMs disclosed provide additional, useful information when analyzing Grieg
Seafood and our business activity.
APMs are non-IFRS financial measures. These measures are not intended to substitute, or to be superior to, any measure of IFRS. The
APMs used by the Group have been defined by Grieg Seafood to supplement our financial reporting and the APMs could therefore deviate
from, or otherwise not being directly comparable to, similar APMs disclosed by other companies.
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
Operational EBIT
and operational
EBIT/kg (GWT)
Operational EBIT is calculated by adding production fee and fair
value adjustment of biological assets, in addition to isolated
non-operational events, such as costs (incl. impairment) of
closing down sites, legal claims- and litigation costs and other
non-operational items to the financial statement line item EBIT
(Earnings before interests and taxes) of the income statement.
Operational EBIT is reported in the Group's segment reporting
(see Note 5), where a reconciliation with EBIT of the income
statement is included.
The operational EBIT/kg (GWT), or operational EBIT/kg, metric
is the operational EBIT divided by harvested volume in kg
gutted weight equivalent. The metric is calculated per farming
region, for Norway and Canada, and for the Group as a whole.
Operational EBIT/kg equals sales revenue/kg subtracted by
farming cost/kg and other costs incl. headquarter costs/kg. The
metric is reported in the Group's segment information (see Note
5), and calculated using solely figures included in the segment
information. Operational EBIT (and operational EBIT/kg) is
defined by Grieg Seafood.
Operational EBIT and operational EBIT/kg are used by
management, analysts, investors and are generally considered
the industry-measures for profitability and are used to assess
our performance. Operational EBIT has been defined by Grieg
Seafood and exclude items as described below. We exclude
these items from our operational EBIT as we believe that
these items impact the usefulness and comparability of our
operational- and financial performance from one period to the
other, as these items have a non-operational or non-recurring
nature. These items include country-specific taxation on harvest,
fair value on biological assets (expected future (unrealized) gains
or losses on fish not yet sold), isolated events not expected to
reoccur, such as litigation and legal claim costs that arise from
prior years as well as costs (incl. impairment) and phasing out
seawater sites. Operational EBIT/kg is a relative metric which
ensures comparability between our farming regions and across
time. The metric captures operational profitability for the Group
and each farming region.
Operational
EBIT%
Operating EBIT% is calculated by dividing operational EBIT by
sales revenue as reported in the segment reporting (see Note
5). Operating EBIT% is reported per region, in addition to Group
level of Grieg Seafood.
Operating EBIT% is used by management to assess operational
performance per region as well as for the Group.
Operational
EBITDA
Operational EBITDA is calculated by adding depreciation (and
write-down) of property, plant and equipment, and amortization
of licenses and intangible assets to Operational EBIT.
Operational EBITDA is reported in the Group's segment reporting
(see Note 5), where a reconciliation with EBIT of the income
statement is included.
Operational EBITDA provides a more informative result, as
it does not consider the items with non-operational and/
or non-recurring nature as described for Operational EBIT.
Furthermore, it excludes the impact accounting estimates of
depreciation and amortization has on our profitability.
Operational
EBITDA%
Operating EBITDA% is calculated by dividing Operational EBITDA
by sales revenue as reported in the segment reporting (see Note
5). Operating EBITDA% is reported per region, in addition to
Group level of Grieg Seafood.
Operating EBITDA% is used by management to assess
operational performance per region as well as for the Group.
PART 03 - OUR FINANCIAL RESULTS
142
APM
ROCE
Equity ratio
NIBD
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
Return on capital employed (ROCE) is calculated by comparing
operational EBIT incl. production fee to capital employed. Capital
employed is calculated on annual and quarterly basis, both as a
quarter-to-date figure and a year-to-date figure. The quarter-
to-date figure is annualized. Capital employed is defined as total
equity excl. the equity component of the fair value adjustment of
biological assets, plus net interest-bearing liabilities according
to the NIBD calculation method 1, as described in the NIBD
section of this APM disclosure. Capital employed for the
reporting period is calculated as the average of the opening and
closing balances.
As the salmon farming industry is a capital-intensive line of
business, ROCE is an important metric to measure the Group’s
profitability relative to the investments made. ROCE is used by
management to measure the return on capital employed. ROCE
is not impacted by capital structure, that is whether the financing
is through equity or debt. The fair value adjustment of biological
assets is excluded from the calculation, both in operational EBIT
and as part of capital employed, as this reflect estimated future
gains or losses on fish not yet sold and this is not considered
useful information by the Group when assessing whether
invested capital yields competitive return.
NIBD/Harvest
NIBD/harvest is calculated using NIBD according to methods
1-3 as described in the NIBD section of this APM disclosure. The
applicable NIBD/harvest indicates which NIBD metric is used in
the calculation. The NIBD/harvest is calculated in two ways:
1.
NIBD divided by actual harvest volume in kg gutted weight
in the last 12 months
NIBD divided by guided full-year harvest volume in kg
gutted weight.
2.
The metric is reported as a key figure of the Group.
NIBD/Harvest captures the leverage of the Group measured by
the harvest capacity and is utilized when optimizing the Group’s
leverage ratio. Actual harvest volume in the last 12 months
indicates the leverage ratio according to proven harvest capacity,
while guided harvest volume indicates the leverage ratio
according to business plans as the Group are targeting volume
growth in an annual basis.
NIBD/harvest is, together with equity ratio and NIBD, useful to
assess the financial robustness and -flexibility of the capital
structure of the Group.
Equity ratio captures the financial solidity of the Group.
Furthermore, the equity ratio according to calculation method 2
is a covenant requirement for the Group. Equity ratio is, together
with NIBD and NIBD/harvest, useful to assess the financial
robustness and -flexibility of the capital structure of the Group.
Net interest-bearing liabilities is a measure of the Group’s net
debt and borrowing commitments, and, together with equity ratio
and NIBD/harvest, useful to assess the financial robustness and
-flexibility of the capital structure of the Group.
The metric is reported as a key figure of the Group, and also
reported in Note 27 to the Group Accounts. The Group has
deducted the investment in money market funds in the NIBD
calculation as from 2022.
Gross investment
Gross investment is equal to the Group’s capital expenditures
(CAPEX) excluding lease liabilities for contracts classified as
operating lease for the lessor (which corresponds to leases
under the previous IFRS accounting standard IAS 17’ definition of
operational leases). Thus, the gross investment figure includes
additions made on property, plant and equipment and intangible
assets owned by the Group, together with long-term lease
arrangements with credit institutions. The metric is reported as
a key figure of the Group.
The Group’s CAPEX monitoring shows that gross investments
are in line with the CAPEX monitoring of the Group. The
accounting impact of lease liabilities for contracts classified
as operating lease for the lessor (which corresponds to leases
under the previous IFRS accounting standard IAS 17’ definition of
operational leases) is excluded from gross investments, as such
leases are not treated as part of CAPEX.
Sales revenue/kg
(GWT)
The sales revenue/kg (GWT) metric is calculated as sales
revenue from farming operations divided by harvested volume in
kg gutted weight equivalent. The metric is calculated per farming
region, for Norway and Canada, and for the Group as a whole.
Sales revenue from farming operations equals the revenue
directly attributable to the sale of Atlantic salmon, including
the impact of fixed contracts and the margin generated by the
sales department. The term "sales revenue from sale of Atlantic
salmon" is also used by the Group.
Group sales revenue from farming operations equals the sum of
the sales revenue from farming operations per farming region
according to the segment information. Sales revenue/kg is
reported in the Group's segment information (see Note 5).
Sales revenue from farming operation is calculated as the
directly attributable revenue from sale of Atlantic salmon, and is
in line with our segment reporting. For the Group, sales revenue
is adjusted for income from sale of bi-products (smolt, fry, roe,
ensilage) as such income are considered as cost reduction
activities for our farming operation.
Sales revenue/kg is a relative metric which ensures
comparability between our farming regions and across time.
The metric captures the price achievement- and -realization
generated by the Group and each farming region.
Equity ratio is calculated in two ways:
1.
Equity according to the Statement of Financial Position
divided by total equity and liabilities according to the
Statement of Financial Position.
Equity according to loan agreements divided by total equity
and liabilities, ex. the impact of IFRS 16. The metric is
reported as a key figure of the Group.
2.
Net interest-bearing debt (NIBD) comprises non-current and
current debt to financial institutions and other interest-bearing
liabilities, after deducting cash and cash equivalents. Amortized
loan costs are not included in NIBD. NIBD is calculated in three
ways:
1.
NIBD includes all long-term and current debt to credit
institutions and other interest-bearing liabilities, incl. lease
liabilities for contracts classified as operating lease for the
lessor (which corresponds to leases under the previous
IFRS accounting standard IAS 17’ definition of operational
leases). This NIBD metric is disclosed in Note 27 to the
Group Accounts. This NIBD metric is included in the ROCE
calculation.
NIBD includes all long-term and current debt to credit
institutions and other interest-bearing liabilities, but is
adjusted according to terms and conditions set out in
the bank loan agreement. This NIBD metric is disclosed
in Note 27 to the Group Accounts, and excludes lease
liabilities for contracts classified as operating lease for the
lessor, in addition to other adjustments made according to
the loan agreement.
NIBD includes all long-term and current debt to credit
institutions and other interest-bearing liabilities but
excludes lease liabilities for contracts classified as
operating lease for the lessor. This metric is calculated
as NIBD according to bullet 1 above, subtracted by lease
liabilities for contracts classified as operating lease for
the lessor as included in the adjustment to the covenant
relating to NIBD in bullet 2 above.
2.
3.
PART 03 - OUR FINANCIAL RESULTS
143
APM
DEFINITION AND CALCULATION
REASON FOR APPLYING APM
FIGURE 3.22
NIBD ACCORDING TO METHOD 1 (NOK MILLION)
Farming cost/kg
(GWT)
The farming cost/kg (GWT) metric is the sum of all costs directly
related to the production and harvest of salmon, divided by the
related harvest volume in kg gutted weight equivalent (GWT).
Thus, at the regional level, farming costs equal operational
costs. Other income is included in the farming cost metric
as cost-reduction activities. Therefore, farming cost can be
calculated as, using the segment information, sales revenue
from farming operations less operational EBIT, divided by
harvest volume. The metric is calculated per farming region, for
Norway and Canada, and for the Group as a whole.
Group farming cost equals the sum of the regions’ farming costs.
Farming cost/kg is reported in the Group's segment information
(see Note 5).
Farming cost/kg is a relative metric which ensures comparability
between our farming regions and across time. The metric
captures the cost level of the farming operations. As Atlantic
salmon is traded largely as a commodity, and the prices achieved
largely reflect a general market price, the farming cost/kg
captures the operational profitability for the Group and each
farming region.
Other costs incl.
ownership and
headquarter
costs/kg (GWT)
The Other costs incl. ownership and headquarters costs/kg
(GWT) metric captures all costs and revenue not directly related
to the production and harvesting of salmon. This includes costs
deriving from activities conducted by the parent company and
other Group companies not related to production, divided by the
Group's harvest volume. The metric is calculated for the Group,
and is reported in the Group's segment information (see Note 5).
Other costs incl. headquarters costs/kg is a relative metric which
ensures comparability when assessing the Group’s cost level
over time. The metric captures the costs of the Group which are
not deemed directly attributable to farming operations.
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
Below, the APMs derived in absolute figures are disclosed and reconciled to the Income Statement, Statement of Financial Position and
Borrowings
Lease liabilities
Non-current liabilities
Current portion of borrowings
Current portion of lease liabilities
Current liabilities
Loans to associates
Cash and cash equivalents
Investments in money market funds
Amortized loan costs
NIBD (method 1)
FIGURE 3.23
GROSS INVESTMENTS (NOK MILLION)
Property, plant and equipment
Intangible assets
Additions according to the Cash Flow Statement
Cash Flow Statement, respectively. The EBITDA and EBIT are disclosed on the Income Statement, and are thus indirectly reconciled on
Finance leases according to IFRS in force prior to 1 January 2019
that statement.
Gross investments
FIGURE 3.21
SALES REVENUE FARMING OPERATIONS, FARMING COST AND OPERATIONAL EBIT (NOK MILLION)
2023
Source
Rogaland
Finnmark
Columbia Newfoundland
Group
British
Source
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Statement of Financial Position
Note 27
Statement of Financial Position
Statement of Financial Position
Note 27
2023
3 492
1 111
4 603
208
300
508
-33
-216
0
17
4 879
2022
2 839
654
3 492
142
227
369
-8
-643
-1 013
25
2 223
Source
2023
2022
Cash Flow Statement
Cash Flow Statement
790
2
792
88
880
562
3
564
115
679
Sales revenue farming operations
Elim/Other - revenue
Sales revenue
Farming cost
Elim/Other & Newfoundland - cost
Note 5
Note 5
Income Statement
Note 5
Note 5
2 305
1 947
1 468
236
1 569
1 620
1 562
Operating EBIT
Income Statement
Operational EBIT farming operations
Note 5
736
736
327
327
-94
-94
British
5 956
1 064
7 020
5 056
1 183
780
875
305
76
-146
-94
2022
Source
Rogaland
Finnmark
Columbia Newfoundland
Group
Sales revenue farming operations
Elim/Other & Newfoundland - revenue
Sales revenue
Farming cost
Elim/Other & Newfoundland - cost
Note 5
Note 5
Income Statement
Note 5
Note 5
Operational EBIT
Income Statement
Operational EBIT farming operations
Note 5
2 124
2 629
1 665
2 124
1 369
755
755
2 629
1 703
926
926
1 665
1 395
270
270
0
0
NA
-115
-115
NA
6 418
746
7 164
4 467
958
1 739
1 951
PART 03 - OUR FINANCIAL RESULTS
144
OUR INTEGRATED
REPORTING
Our integrated report covers our progress with respect to all of
our pillars and material topics. We believe that measuring and
integrating comparable, consistent and reliable environmental,
social, and governance parameters is fundamental to making
more informed decisions and to facilitating long-term
sustainable growth.
PART 04
GLOBAL REPORTING INITIATIVE (GRI) INDEX
STAKEHOLDER DIALOGUE
THE SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) INDEX
AUDITOR’S SUSTAINABILITY REPORT
146
154
155
156
GLOBAL REPORTING
INITIATIVE INDEX
This report has been prepared in accordance with the GRI Standards
2021. We follow the GRI Standards to report our impacts on the economy,
environment and people, including human rights, allowing for greater
transparency and accountability. For more information on our approach to
corporate social responsibility and transparency, see our website.
MANAGEMENT OF MATERIAL TOPICS
With our vision of farming the ocean for a better future, we
REVIEWING MATERIAL TOPICS
The annual materiality review process is based on a revision
demonstrate our commitment to corporate responsibility
of existing material topics, in addition to an assessment of
by operating profitably and sustainably in a manner that
the likely material topics proposed by the sector standard,
conforms with fundamental ethical norms and respect for the
GRI 13: Agriculture, aquaculture and fishing sectors 2022. In
individual, the environment and society as a whole. We apply the
2023, we reviewed our detailed impact assessment, where
precautionary principle as our strategy for approaching issues
identified and assessed sustainability topics were reviewed in
of potential harm when scientific knowledge is lacking. We aim
light of our negative and positive impact on the environment,
to collaborate and take part in research to develop and test
economy and people for the reporting year. In order to be able to
new solutions. In pursuit of our vision, we will face risks and
prioritize the impacts for reporting based on their significance,
opportunities. Our risk management is clearly connected with a
a materiality assessment impact rating tool was used, with
multitude of stakeholder expectations, and the topics we have
severity and likelihood as key concepts. Read more about the
identified as material.
stakeholders whose views have informed the process here. The
revision resulted in no changes in the list of material topics
The Board exercises oversight of strategic, operational and
represented in bold under our pillars from 2022 to 2023. The list
financial matters, including the nature and extent of major risks.
is reviewed by our Board of Directors. We consider several topics
The Board and the CEO have delegated responsibility to the
as significant and cover our impact related to other topics not
various business areas and functions, ensuring that operational
included in our list of material topics in this report as well as on
responsibility is an integral part for all management teams and
our website.
units and departments. We have implemented Group policies
and targets aligned with our pillars and business strategy.
Both monthly key performance indicator (KPI) report, which is
EXTERNAL VERIFICATION
To ensure the quality of our report and the information (both
used both by operational management and the Board, and our
quantitative and qualitative) provided, it is reviewed and verified
published quarterly reports, are based on these policies and
internally. To ensure high data quality and to enhance the
targets. Deviations from targets are followed up and action plans
credibility of our sustainability reporting, it has been assured by
are implemented. We have a whistleblower channel, operated by
our independent auditor, PwC. Our GRI Index provides further
EY, available both internally for our employees and externally for
information about the audit performed, where “A” refers to
our stakeholders to report any unwanted behavior and breaches
assurance that the disclosures are presented according to
of our Code of Conduct. We also provide a grievance mechanism
the GRI Standards (2021). “B” refers to assurance that the
for local communities on our regional websites.
quantitative sustainability disclosures, referred to from the GRI
DETERMINING MATERIAL TOPICS
The materiality assessment is fundamental to our holistic and
integrated reporting. Together with our stakeholders, we have
Index, are calculated, estimated and reported in accordance with
the criteria defined in GRI or the GRI index. Reference is made to
the auditor’s statement on sustainability reporting.
identified our current and future positive and negative impact on
the environment, economy and people, including human rights.
REPORTING SCOPE AND BOUNDARY
Grieg Seafood exclusively produces Atlantic salmon, accounting
The topics listed under each pillar is identified as important to
for 100% of its animal protein production, and has not
our organization and our stakeholders, and is covered by group
delegated any of its production to outsourcing. The scope of
policies. The highlighted topics represents the list of material
our sustainability metrics provided in this report includes the
topics reported in line with the GRI standards. Find a combined
environmental, social, and governance performance that has
overview of our pillars, targets and Group policies here.
been deemed material to Grieg Seafood's operations for the
calendar year ended 31 December 2023. The metrics covers
our global operations and includes wholly-owned subsidiaries.
It does not include associated companies or joint ventures, as
we do not have management control of these companies. There
have been no mergers, acquisitions or disposal of entities in 2023
impacting the scope. No adjustments have been made for any
minority interests.
146
PART 04 - OUR INTEGRATED REPORTING Legal entities
Within scope Material topic
Grieg Seafood Rogaland AS
Yes
Grieg Seafood Rogaland Sjø AS
Yes
Grieg Seafood Finnmark AS
Yes
Grieg Seafood Finnmark Sjø AS
Grieg Seafood Sales AS
Grieg Seafood ASA
Grieg Seafood BC Ltd
Yes
Yes
Yes
Yes
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation, Indigenous
relationships
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation, Indigenous
relationships
Safe & healthy food, Climate action, Responsible business conduct, Corporate governance,
Human rights, Keeping our employees safe
Climate action, Responsible business conduct, Corporate governance, Human rights, Keeping
our employees safe
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation, Indigenous
relationships
Grieg Seafood Sales North America Inc
Yes
Safe & healthy food, Climate action, Responsible business conduct, Corporate governance,
Human rights, Keeping our employees safe
Grieg Seafood Newfoundland Ltd
Yes
Grieg Marine Ltd
Grieg NL Nurseries Ltd
Grieg Seafood Canada AS
Grieg Seafood Newfoundland AS
Grieg Seafood UK Ltd
Grieg Seafood Sales USA Inc
Grieg Seafood Premium Brands Inc
Yes
Yes
No
No
No
No
No
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation
Fish health & welfare, Protecting wild salmon, Protecting biodiversity & marine ecosystem,
Sustainable feed ingredient, Climate action, Responsible business conduct, Corporate
governance, Human rights, Keeping our employees safe, Local value creation
N/A
N/A
N/A
N/A
N/A
DATA QUALITY
We have implemented internal controls to ensure the accuracy and completeness of the data included in this report. Any limitations or
exclusions to our reporting are disclosed throughout this report. The quantitative information provided in this report, is mainly data we
have retrieved from our production-, logistics-, human resource- and financial systems. Where data has been measured or estimated,
this is indicated in footnotes. If we use external data, the source is specified. Our data is reported consistently, unless otherwise
indicated. Any restatement of historical data is disclosed.
147
PART 04 - OUR INTEGRATED REPORTING GRI CONTENT INDEX
DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
The GRI content index refers to where information about each disclosure is presented in our 2023 Annual Report, 2023 Remuneration
Report, 2023 TNFD Report or company website.
2-8
Workers who are
not employees
We define workers who are not employees
as contractors. Data reported on
contractors are compiled in headcount,
similarly to our employees
Part 02 - Our operational
results, People: The
workforce at year-end 2023
Statement
of use
Grieg Seafood has reported in accordance with the GRI Standards for the period 01.01.2023 to 12.31.2023
GRI 1 used GRI 1: Foundation 2021
GRI 13: Agriculture, Aquaculture and Fishing Sectors 2022
Applicable
GRI Sector
Standard
DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
GRI 2: GENERAL DISCLOSURES 2021
The organization and its reporting practices
2-1
2-2
2-3
Organizational
details
Entities included in
the organization's
sustainability
reporting
Reporting period.
frequency and
contact point
2-4
Restatements of
information
2-5
External
assurance
Part 03 - Our financial
results, Note 1 General
information
Part 02 - Our operational
results, Climate action: GHG
reporting standard;
Part 04 - Our integrated
reporting, Reporting scope
and boundary
In our integrated sustainability and financial
report, we report annually according to
the GRI Standards. Contact points: Chief
Sustainability Officer: Tor Eirik Homme,
tor.eirik.homme@griegseafood.com. Group
Communication Manager: Kristina Furnes,
kristina.furnes@griegseafood.com.
Part 02 - Our operational
results, Climate action: GHG
reporting
standard;
Part 03 - Our financial
results, Note 1 General
information
From 2022 to 2023 we changed our
definition of the percentage
of production volume certified to third-party
animal health and welfare standards from
being calculated based on budgeted net
production to harvest volume per year-end.
The changes led to the inclusion of more
specific information, which in turn caused a
reduction in percentage.
The Chief Sustainability Officer seeks
external assurance of sustainability
reporting according to GRI Standards,
climate accounting and sustainability
KPIs. Our sustainability reporting has been
assured by our independent auditor PwC.
Activities and workers
2-6
Activities,
value chain and
other business
relationships
Feed was our main supply category in 2023,
comprising 39% of our cost. Other relevant
business relationship is our investment
associates
2-7
Employees
We do not have any non-guaranteed hours
employees
Part 04 - Our integrated
reporting, Auditor’s
sustainability report
Part 01 - Our foundation,
Our value chain;
Part 03 - Our financial
results, Note 16 Investment
in associated companies and
joint ventures
Part 02 - Our operational
results, People: The
workforce at year-end 2023
NO
NO
NO
NO
NO
NO
NO
A
A
A
A
A
A
A, B
Governance
2-9
Governance
structure and
composition
2-10
2-11
2-12
2-13
2-14
2-15
2-16
2-17
2-18
Nomination
and selection
of the highest
governance body
Chair of
the highest
governance body
Role of the highest
governance body
in overseeing
the management
impacts
Delegation of
responsibility for
managing impacts
Role of the highest
governance body
in sustainability
reporting
Conflicts of
interest
Communication of
critical concerns
Collective
knowledge of
the highest
governance body
Evaluation of the
performance
of the highest
governance body
Part 03 - Our financial results,
Corporate governance
principles: 8. Board of
directors: composition and
independence;
Webpage - Board of Directors
Part 03 - Our financial
results, Corporate
governance principles: 7.
Nomination committee
Part 03 - Our financial
results, Corporate
governance principles:
8. Board of directors:
composition and
independence
Part 03 - Our financial
results, Corporate
governance principles:
8. Board of directors:
composition and
independence
Part 03 - Our financial
results, Corporate
governance: Governance
structure
Part 03 - Our financial
results, Corporate
governance: Governance
structure
Part 03 - Our financial
results, Corporate
governance principles:
9. The work of the Board
of directors: Conflict of
interest;
Group Accounts, Note 30
Related parties;
Corporate social
responsibility, Corporate
governance
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Governance
structure
Part 03 - Our financial
results, Corporate
governance principles:
9. The work of the Board
of Directors, Annual
assessment
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
EXTERNAL
ASSURANCE
A, B
A
A
A
A
A
A
A
A
A
A
148
PART 04 - OUR INTEGRATED REPORTING EXTERNAL
ASSURANCE
MATERIAL TOPICS
DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
2-19
Remuneration
policies
The remuneration policy does not have
any stated principles on sign-on bonuses,
recruitment incentive payments or
clawbacks
2-20
Process to
determine
remuneration
95.5 % voted for the Remuneration report
2022 and 4.5% voted against
2-21
Workers who are
not employees
Strategy, policies and practices
2-22
Statement on
sustainable
development
strategy
2-23
Policy
commitments
2-24
Embedding policy
commitments
2-25
2-26
2-27
2-28
Process to
remediate
negative impacts
Mechanisms for
seeking advice and
raising concerns
Compliance
with laws and
regulations
Membership
associations
Grieg Seafood do not hold any significant
role in membership associations. However,
we are member of several industry
associations and engage in collaboration
and partnerships with researchers, peers,
companies in our value chain, NGOs and
other relevant actors
Webpage - Executive
Remuneration policy
Part 03 - Our financial results,
Corporate governance
principles: 12. Remuneration
of executive personnel
Remuneration Report -
Remuneration of executive
personnel: Fixed pay salary;
Governance: Authorization of
the Board
Remuneration Report
-Comparative information
on the remuneration paid
in the last five years
Part 03 - Our financial
results, Board of
Directors report: Main
Achievements, Targets and
achievements
Part 03 - Our financial
results, Corporate
governance: Governance
structure; Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Governance
structure; Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
Part 03 - Our financial
results, Corporate
governance: Compliance
NO
NO
NO
NO
NO
NO
NO
NO
NO
Webpage - Partnerships and
collaboration
NO
Stakeholder engagement
2-29
2-30
Approach to
stakeholder
engagement
Collective
bargaining
agreements
Part 04 - Our integrated
reporting,
Stakeholder dialogue
Unionized employees for Norway are
disclosed. Labor unions in Canada are
organized differently. Therefore, a group
average is not disclosed.
Part 02 - Our operational
results, People: Unionized
employees (%) at year end
2023
NO
NO
A
A
A
A
A
A
A
A
A
A
A
A
GRI 3: MATERIAL TOPICS
3-1
3-2
Process to
determine
material topics
List of material
topics
ANIMAL HEALTH AND WELFARE
3-3
Management of
material topics
Additional
sector
disclosures
Percentage
of production
volume certified
to third-party
animal health
and welfare
standards
We recognize the ASC-certification as the
main animal health and welfare standard
in our industry. We refer to our production
volume as total harvested volume per
31.12.2023 in line with GSI definition, as
this is the quantity of production that is
made available for market distribution. The
percentage is calculated as total harvested
volume from ASC certified sites divided by
total harvested volume.
Survival rate
at sea
Main causes for
reduced survival
in seawater
List of the main causes of reduced survival
with loss stated in number and tonnes of
fish.
Use of antibiotics
Grieg
Seafood
Indicator
009
This Grieg Seafood indicator corresponds
to the GSI indicator "Antibiotic Use"
which is defined as "the amount of active
pharmaceutical ingredients (API) used (in g)
per tonne of fish produced (LWE)".
SECTOR
STANDARD
REF.NO.
NO
NO
Part 04 - Our integrated
reporting, Global reporting
initiative index: Determining
material topics, Reviewing
material topics;
Stakeholder dialogue
Part 1 - Our foundation,
Sustainable foundation
Part 04 - Our integrated
reporting, Global reporting
initiative index: Reviewing
material topics
EXTERNAL
ASSURANCE
A
A
Webpage - Fish health and
welfare, Cleaner fish health
and welfare;
Webpage - Group policies,
Fish welfare of salmon and
cleaner fish, Fish health of
salmon and cleaner fish;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, Our certifications
NO
13.11.1
A
NO
13.11.2
A, B
Part 01 - Our foundation.
Our sustainability
scoreboard
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Main
causes of reduced survival
in seawater
Part 1 - Our foundation,
Our sustainability
scoreboard
NO
13.11.3
A, B
NO
A, B
NO
A, B
149
PART 04 - OUR INTEGRATED REPORTING DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
BIODIVERSITY
3-3
Management of
material topics
Operational sites
owned, leased,
managed in,
or adjacent to,
protected areas
and areas of high
biodiversity value
outside protected
areas
Significant
impacts of
activities,
products and
services on
biodiversity
Habitats
protected or
restored
IUCN Red
List species
and national
conservation
list species
with habitats in
areas affected by
operations
Information on
species of aquatic
organisms,
juvenile seeds
stocks and
fishing products
in feed
Number of
escape incidents
and fish escaped
Sea lice levels
304-1
304-2
304-3
304-4
Additional
sector
disclosures
Grieg
Seafood
Indicator
003
Grieg
Seafood
Indicator
004
NO
13.3.1
A
NO
13.3.2
A, B
Webpage - Wild salmon,
Wildlife, White fish,
Crustaceans, Impact on
nature; Webpage - Group
policies, Protecting
biodiversity;
Part 01 - Our foundation, Our
sustainability scoreboard;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg
Seafood Finnmark-,
Grieg Seafood BC-, Grieg
Seafood Newfoundland
- Protecting marine
ecosystems
Webpage - Wild salmon,
Wildlife, White fish,
Crustaceans, Impact on nature
NO
13.3.3
A
NO
13.3.4
A
NO
13.3.5
A, B
NO
13.3.6
A, B
NO
NO
A, B
A, B
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Restored
ecosystem under farms;
Protecting marine
ecosystems
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland- IUCN Red list-
and national conservation list
species
Webpage - Sustainable marine
ingredients;
Part 01 - Our foundation, Our
organization, Our value chain;
Part 02 - Our operational
results, Sustainable feed
ingredients: Volume of marine
ingredients
Part 1 - Our foundation,
Our sustainability
scoreboard
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark-, Grieg Seafood
BC - Sea lice levels
This Grieg Seafood indicator corresponds
to the GSI indicator "Fish escapes" which is
defined as "number of fish escape incidents
and number of fish escaped (after net
recapturing)".
This Grieg Seafood indicator corresponds
to the GSI indicator "Sea lice counts" which
is defined as "sea lice according to local
action levels set by the authorities".
Grieg
Seafood
Indicator
005
Environmental
status of our
sites
Grieg
Seafood
Indicator
006
Grieg
Seafood
Indicator
007
Grieg
Seafood
Indicator
008
Hydrogen
peroxide
treatments
Active
substances used
for treatments
Number of dead
birds and marine
mammals
FOOD SAFETY
3-3
Management of
material topics
416-1
416-2
Additional
sector
disclosures
Assessment of
the health and
safety impacts
of product
and service
categories
Incidents of
non-compliance
concerning
the health and
safety impacts
of products and
services
Percentage
of production
volume from
sites certified to
internationally
recognized food
safety standards
Environmental status of our sites is a
result of benthic monitoring tests under
and around our sites according to local
regulations, as explained under the
presentation of the B-test results and
%-of sites that are restored in the regional
chapters we refer to.
This Grieg Seafood indicator equals the
GSI indicator "Use of hydrogen peroxide",
which is defined as "the amount of active
pharmaceutical ingredients (API) used (in
kg) per tonne of fish produced (LWE)".
This Grieg Seafood indicator corresponds
to the GSI indicator "Sea lice treatments"
which is defined as "the amount of active
pharmaceutical ingredients (API) used (in
gr) per tonne of fish produced (LWE)".
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg Seafood
Finnmark - Results of
B-test. Grieg Seafood
BC-, Grieg Seafood
Newfoundland - % of sites
that are restored
Part 1 - Our foundation,
Our sustainability
scoreboard
Part 1 - Our foundation,
Our sustainability
scoreboard
This Grieg Seafood indicator is based on the
GSI indicator "Wildlife interactions" which is
defined as "total number of lethal incidents
by species divided by total number of sites"
except that we report the total number of
lethal incidents per region.
Part 02 - Our operational
results, Grieg Seafood
Rogaland-, Grieg
Seafood Finnmark-,
Grieg Seafood BC-, Grieg
Seafood Newfoundland
- Sustainability scoreboard
NO
A, B
NO
NO
NO
A, B
A, B
A, B
Webpage - Safe food;
Webpage - Group policies,
Food safety;
Part 04 - Our integrated
reporting reporting,
Stakeholder dialogue
Part 02 - Our operational
results, Our certifications
NO
13.10.1
A
NO
13.10.2
A
Part 02 - Our operational
results, Sales & market:
Our sales & market results
NO
13.10.3
A, B
Part 02 - Our operational
results, Our certifications
NO
13.10.4
A, B
As all of our products is appropriated
human consumption, the health and safety
impacts are constantly tested as a part of
our certification processes.
We refer to Global G.A.P, BAP and FSSC
22000 as internationally recognized
food safety standards. We refer to our
production volume as total harvested
volume per 31.12.23, as this is the quantity
of production that is made available for
market. 96% of harvested volume in our
operating regions is certified according to
Global G.A.P and BAP. 62% of harvested
volume in our regions in Norway is certified
according to FSSC 22000.
150
PART 04 - OUR INTEGRATED REPORTING DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
Part 02 - Our operational
results, Sales & market:
Our sales & market results
NO
13.10.5
A, B
201-2
Financial
implications and
other risks and
opportunities due
to climate change
No direct cost is taken in 2023 to manage
climate related risks or opportunities
Part 03 - Our financial
results, Note 3 Nature and
climate related risk
NO
13.2.2
A, B
NO
13.3.1
A
FOOD SECURITY
3-3
Management of
material topics
Our commitment and lessons learned
related to food security and providing
healthy food with lower impact is
explained through our actions taken and
targets described in polices related to
sustainable feed and climate action
Webpage - Blue food in a
transformed food system;
Webpage - Group policies,
Sustainable feed, Climate
action;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
NO
13.9.1
A
Number of
recalls issued
for food safety
reasons and the
total volume of
products recalled
EMISSIONS
3-3
Management of
material topics
305-1
Direct (Scope 1)
GHG emissions
Biogenic CO2 emissions (tCO2e) is not
relevant for our operations.
305-2
Energy indirect
(Scope 2) GHG
emissions
The group's market-based Scope 2 GHG
emissions amount to 11 610 tCO2e in
2023. There has been an adjustment in the
Canadian conversion factor for market-
based Scope 2 emissions within our climate
accounting system. If these changes had
not occurred, the market-based Scope 2
emission would have increased significantly
compared to last year. We have not
acquired any guarantees of origin.
305-3
Other indirect
(Scope 3) GHG
emissions
Biogenic CO2 emissions (tCO2e) is not
relevant for our operations.
305-4
GHG emissions
intensity
305-5
Reduction of GHG
emissions
305-6
305-7
Emissions of
ozone-depleting
substances (ODS
Nitrogen oxides
(NOx), sulfur
oxides (SOx), and
other significant
air emissions
Grieg Seafood does not have emissions
from ODS.
We do not have any significant air
emissions.
CLIMATE ADAPTATION AND RESILIENCE
3-3
Management of
material topics
Webpage - Reducing carbon
emission;
Webpage - Group polices,
Climate action;
Part 02 - Our operational
results, Climate action:
Climate action plan update;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, Climate action: Scope
1 & Scope 2 emissions; GHG
reporting standard
Part 02 - Our operational
results, Climate action: Scope
1 & Scope 2 emissions; GHG
reporting standard
NO
13.3.2
A, B
NO
13.3.3
A, B
NO
13.3.4
A, B
NO
13.3.5
A, B
NO
13.3.6
A, B
Part 02 - Our operational
results, Climate action, Scope
3 emissions; GHG reporting
standard
Part 02 - Our operational
results, Climate action: Our
greenhouse gas accounts;
GHG reporting standard
Part 02 - Our operational
results, Climate action:
Greenhouse gas emissions;
GHG reporting standard;
Scope 1 & Scope 2 emissions;
Scope 3 emissions
NO
13.3.7
A, B
NO
13.3.8
A
NO
13.2.1
A
TCFD-report;
Part 02 - Our operational
results, Climate action:
Climate action plan update;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
NATURAL ECOSYSTEM CONVERSION
3-3
Management of
material topics
SUPPLY CHAIN TRACEABILITY
3-3
Management of
material topics
Additional
sector
disclosures
Level of
traceability
Improvements
projects related to
certification
ANTI-CORRUPTION
3-3
Management of
material topics
205-1
Operations
assessed for
risks related to
corruption
Webpage - Zero deforestation
and conversion;
Webpage - Group polices,
Sustainable feed;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Webpage - Continuous
improvement in our value
chain; Sustainable feed
ingredients; Sustainable
marine ingredients; Zero
deforestation and conversion
Webpage- Group polices,
Sustainable feed;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, Sustainable feed
ingredients: Traceability
Part 02 - Our operational
results, Sustainable feed
ingredients: Certifications
Webpage - Anti-corruption
policy;
Part 03 - Our financial results,
Corporate governance:
Responsible business conduct;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 03 - Our financial
results, Corporate
Governance: Responsible
business conduct
NO
13.4.1
A
NO
13.23.1
A
NO
13.23.2
NO
13.23.4
A
A
NO
13.26.1
A
NO
13.26.2
A, B
151
PART 04 - OUR INTEGRATED REPORTING DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
205-2
Communication
and training
about anti-
corruption
policies and
procedures
Our Code of Conduct program involves
guidelines and procedures for anti-
corruption. The disclosure requirements
is met with one minor exemption, a large
share of our suppliers in purchase value
has signed the Supplier Code of Conduct.
We are not able to provide the exact
number and percentage, nor break down
by region. We will work to systemize this
data going forward.
205-3
Confirmed
incidents of
corruption and
actions taken
EMPLOYEE HEALTH AND SAFETY
3-3
Management of
material topics
403-1
403-2
403-3
403-4
403-5
Occupational
health and safety
management
system
Hazard
identification,
risk assessment,
and incident
investigation
Occupational
health services
Worker
participation,
consultation, and
communication
on occupational
health and safety
Worker training
on occupational
health and safety
403-6
Promotion of
worker health
403-7
403-8
Prevention and
mitigation of
occupational
health and
safety impacts
directly linked
by business
relationships
Workers
covered by an
occupational
health and safety
management
system
Part 02 - Our operational
results, People: Code of
conduct program
YES,
point c.
13.26.3
A, B
403-9
Work-related
injuries
The disclosure requirements is met with
one minor exemption, workers covered
by this standard (workers who are not
employees but whose work and/or
workplace is controlled by the organization)
are not a material part of Grieg Seafood's
operations. Therefore, this part of the
standard is not relevant.
Part 02 - Our operational
results, People: Safety
indicators 2023
YES, point
b.
13.19.10
A, B
NO
13.26.4
A, B
NO
13.19.1
A
Part 03 - Our financial
results, Corporate
governance: Responsible
business conduct
Webpage - Health and safety;
HSE policy
Part 02 - Operational results,
People: Health and safety, Our
results;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, People: Safety
indicators in 2023
NO
13.19.2
Part 02 - Our operational
results, People: Safety
indicators in 2023
NO
13.19.3
Part 02 - Our operational
results, People: Safety
indicators in 2023
Part 02 - Our operational
results, People: Our
colleagues, Health and
safety
Part 02 - Our operational
results, People: Our
colleagues, Health and
safety
Part 02 - Our operational
results, People: Our
colleagues, Health and
safety
Part 02 - Our operational
results, People: Safety
indicators in 2023
NO
13.19.4
NO
13.19.5
NO
13.19.6
NO
13.19.7
NO
13.19.8
A
A
A
A
A
A
A
Part 02 - Our operational
results, People: Safety
indicators in 2023
NO
13.19.9
A, B
403-10
Work-related ill
health
We have no incidents of work-related ill
health
Part 02 - Our operational
results, People: Safety
indicators in 2023
NO
13.19.11
A, B
FORCED OR COMPULSORY LABOR
3-3
Management of
material topics
409-1
Operations and
suppliers at
significant risk
for incidents
of forced or
compulsory labor
CHILD LABOR
3-3
Management of
material topics
408-1
Operations and
suppliers at
significant risk
for incidents of
child labor
RIGHTS OF INDIGENOUS PEOPLE
3-3
Management of
material topics
411-1
Incidents of
violations
involving rights
of indigenous
peoples
Additional
sector
disclosure
Location of
operations
Webpage - Human rights;
Group policies - Human rights;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, People: Our
colleagues, Human rights;
Webpage - Human Rights
Progress Report
Webpage - Human rights;
Group policies - Human rights;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, People: Our
colleagues, Human rights;
Webpage - Human Rights
Progress Report
Webpage - BC, Indigenous
people; Finnmark,
Aquaculture in Sami areas;
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
BC - Local
communities
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
BC - Local communities;
Part 03 - Our financial
results, Corporate social
responsibility: Corporate
governance
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
BC - Local communities
NO
13.16.1
A
NO
13.16.2
A
NO
13.17.1
A
NO
13.17.2
A
NO
13.14.1
A
NO
13.14.2
A, B
NO
13.14.3
A
152
PART 04 - OUR INTEGRATED REPORTING DISCLOSURE
RESPONSE
LOCATION
OMISSION GRI
SECTOR
STANDARD
REF.NO.
EXTERNAL
ASSURANCE
LOCAL COMMUNITIES
3-3
Management of
material topics
We report on our efforts in local
communities in all of the regional chapters.
413-1
413-2
Operations with
local community
engagement,
impact
assessments,
and development
programs
Operations with
significant actual
and potential
negative
impacts on local
communities
ECONOMIC INCLUSION
3-3
Management of
material topics
201-2
203-3
Direct economic
value generated
and distributed
Infrastructure
investments
and services
supported
203-2
Significant
indirect economic
impacts
Salmon farming has a range of significant
indirect economic impacts that can affect
local and regional economies in terms
of economic activity, such as purchasing
equipment and feed, as well as creating
employment opportunities. We describe
the significance of our indirect economic
impacts in the context of UNSDGs and
zero hunger.
Part 01 - Our foundation,
Our sustainability
scoreboard;
Sustainable foundation:
Financial impact of
material topics;
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland;
Part 04 - Our integrated
reporting, Stakeholder
dialogue
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Local
communities
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland -Local
communities
Part 01 - Our foundation,
Our sustainability
scoreboard;
Sustainable foundation:
Financial impact of
material topics;
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland - Local
communities;
Part 04 - Our integrated
reporting,
Stakeholder dialogue
Part 2 - Our operational
results, Profitable
operations: Direct
economic value generated
and distributed
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland -Local
communities
Part 02 - Our operational
results, Grieg Seafood
Finnmark-, Grieg Seafood
Rogaland-, Grieg Seafood
BC-, Grieg Seafood
Newfoundland -Local
communities;
Webpage - UNSDG
NO
13.12.1
A
NO
13.12.2
A
TOPICS IN THE APPLICABLE GRI SECTOR STANDARD
DETERMINED AS NOT MATERIAL
TOPIC
EXPLANATION
GRI 13: Agriculture, Aquaculture and Fishing Sectors 2022
Soil health
Pesticides use
Soil health is determined as not material as a result of the detailed impact assessment. The scope of impact is limited
to the countries where our feed suppliers source vegetable raw materials. Hence, the overall severity of the impacts is
assessed to be moderate
Pesticides use is determined as not material as a result of the detailed impact assessment. The severity is assessed
as moderate as the use of pesticide in crop production is regulated and the scope is limited to tier-two suppliers. The
approach to sea lice control is discussed under animal health and welfare, as the use of delousing chemicals is defined
as medicine or disinfectant which is readily dissolvable, and not a pesticide.
Water and effluents
Water and effluents is determined as not material as a result of the detailed impact assessment. Grieg Seafood does not
operate in water scarce areas. The nutrient build-up from fish feces is likely, however the scope is limited to local impact
and restoration of sea beds allows remediation.
Waste
Waste is determined as not material as a result of the detailed impact assessment. In the comparison of impact level to
the other material topics, waste is considered to be significant.
Land and resource rights
Land and resource rights is determined as not material as a result of the detailed impact assessment. The possession of
farming licenses to operate ensures predictability and accountability of land and resource rights.
NO
13.12.3
A
Non-discrimination and equal
opportunity
Non-discrimination and equal opportunities is determined as not material as a result of the detailed impact assessment.
The severity is high, however the likelihood is limited by human rights regulation.
NO
13.22.1
A
NO
13.22.2
A, B
NO
13.22.3
A, B
NO
13.22.4
A
Freedom of association and
collective bargaining
Freedom of association and collective bargaining is determined as not material as a result of the detailed impacts
assessment. Grieg Seafood ensures freedom of association and collective bargaining for its employees. The likelihood
is limited through regulations from ILO.
Employment practices
Employment practices is determined as not material as a result of the detailed impact assessment. The scope is limited
to our direct operations, whereas the severity is determined to moderate.
Living income and living wage
Living income and living wage is determined as not material as a result of the detailed impact assessment, as the scale
is low and impacts concerning living income and wage is possible to counteract. Thus, the severity is determined to be
moderate.
Public policy
Public policy is determined as not material as a result of the detailed impact assessment, as the scale is low and the
impact is easy to counteract, the severity is determined to be moderate
Anti-competitive behavior
Anti-competitive behavior is determined as not material, as a result of the detailed impact assessment, as there is no
documented indication of impact on the economy, environment and people
153
PART 04 - OUR INTEGRATED REPORTING STAKEHOLDER DIALOGUE
Our value ‘Open’ guides our stakeholder dialogue. We aim to be open and
honest about our performance and challenges, make it easy for our stakeholders
to hold us accountable, and share how we work to improve.
Engaging and collaborating with our stakeholders helps us
We engage actively and continuously with our stakeholders,
understand and address our most material sustainability issues.
and always maintain an open door for stakeholder feedback.
Our stakeholders span our five pillars and gaining their trust
Stakeholders frequently contact us to discuss issues. We also
is integral for our license to operate. Stakeholders are chosen
engage stakeholders proactively on matters where we believe
according to the impact they have on our business, and the
we can have significant impact, such as with feed suppliers. The
economic, environmental and social impact we have on the
continuous dialogue with our stakeholders provides the basis
stakeholders. Stakeholder dialogue is also key to be able to grasp
for the materiality matrix. Ultimately, our stakeholders help us
emerging opportunities for our business, and to understand and
deliver healthy food and make positive impacts throughout our
mitigate risk.
value chain.
STAKEHOLDER
STAKEHOLDER
MATERIAL TOPIC
HOW WE ENGAGE ACTIONS
EXAMPLE
• All sustainability
Correspondence,
We collaborate with and
Together with WWF
ORGANIZATIONS/ NON-
challenges
meetings, media
seek advice from actors
US, we have initiated
GOVERNMENTAL
ORGANIZATIONS
SHAREHOLDERS,
INVESTORS, ASSET
MANAGERS AND
ANALYSTS
and social media.
that constructively seek to
a project to evaluate
improve the industry. That
environmental, social
includes several environmental
and governance
organizations and research
risks in salmon feed
institutions.
ingredients in a holistic
manner.
• All sustainability
Quarterly
We make every effort to maintain
We actively engage
challenges, and
presentations,
a continuous, open, and honest
with ESG raters, such
how we utilize
roadshows,
dialogue about our strategy and
as Sustainalytics
opportunities and
meetings, frequent
results. We have also started
and Coller FAIRR,
mitigate risk
dialogue, capital
engaging with relevant indexes
to understand their
•
In particular
market days, and
where we are rated, to make
assessments and also
long-term
engagement with
sure they give Grieg Seafood an
to provide feedback
performance and
relevant indexes.
accurate score.
returns, both
on financial and
sustainability-
related
parameters
on how we work with
various topics.
CUSTOMERS
• All sustainability
Customer surveys,
We have frequent dialogues with
We have engaged in
challenges
frequent dialogue,
our customers. We supply them
Cerrado Manifesto
•
In particular
audits, visits and
with material for dialogue with
Signatories of Support,
safe and healthy
trade fairs.
their own stakeholders, and
which aims to halt
food, including
certifications and
transparency
participate in initiatives where
deforestation in the
our customers are present.
Brazilian Cerrado.
Many of our customers
are also signatories to
the initiative.
MATERIAL TOPIC
HOW WE ENGAGE ACTIONS
EXAMPLE
STAKEHOLDER
NATIONAL
AUTHORITIES /
REGULATORS
• All sustainability
Meetings, site
We have an open dialogue with
We are
EMPLOYEES
• Keeping our
Continuous dialogue
Frequent dialogue on all levels
We use Workplace on
challenges
visits, and
all official authorities where
committed to be a
•
In particular
correspondence.
we operate, and collaborate on
constructive partner
employees safe
and meetings,
and initiatives for training,
a daily basis to inform
• Fish health
intranet, and
education, and development.
employees about
balanced
regulation and
long-term local
value creation
all aspects. We welcome their
for the government
efforts to enforce regulations and
and Indigenous
engage in constructive dialogue.
communities in the
2025 transition process
in BC, and to find a path
forward that works for
all stakeholders.
LOCAL
AUTHORITIES /
COMMUNITIES
• All sustainability
Dialogue with
We recognize public concern
Through our website,
challenges
special interest
for the oceans, invite visitors
and in particular the
•
In particular local
groups locally,
to our farms and participate
regional websites,
employee surveys.
We also engage in dialogue
developments, build
with trade unions and employee
culture, and cultivate
representatives. Focus on
engagement.
developing a culture in line with
our values.
and welfare,
and all other
sustainability
challenges
• Significant
topics include
embracing
diversity and
creating attractive
jobs
value creation,
open meetings,
in the public debate about
we aim to improve
SUPPLIERS
• Responsible
Dialogue, meetings,
Ensuring that they comply with
We have quarterly
indigenous
site visits, and
salmon farming. We try to find
transparency and
business conduct
conferences and
our Code of Conduct, and that we
meetings with our feed
relationships
and co-existence
with other local
interests
dialogue through
mainstream
media and digital
channels.
solutions to accommodate other
local interests. In areas with
Indigenous populations, consent,
dialogue and relations with
Indigenous representatives are
especially important.
dialogue with our local
communities.
• Local value
creation
correspondence.
have a common understanding
of ethics, sustainability and the
delivery of goods and services.
This particularly pertains to
our suppliers of fish feed and
staffing.
suppliers, where we
discuss issues and
developments.
154
PART 04 - OUR INTEGRATED REPORTING SASB INDEX
The Sustainability Accounting Standards Board (SASB) functions as an autonomous organization responsible for establishing standards.
Its primary goal is to advocate for the disclosure of essential sustainability information to cater to investor requirements. The SASB
standards is classified as Sustainability Accounting Standards and is a part of the The International Financial Reporting Standards (IFRS)
Foundation and is under stewardship of the International Sustainability Standards Board (ISSB).
In the table provided below, specific indicators are cited from the SASB standards for the Meat, Poultry & Dairy industry, representing a
comprehensive standard applicable to the entire industry. Consequently, only certain aspects of these disclosures are relevant to Grieg
Seafood. Nevertheless, we remain committed to enhancing further SASB-related disclosures that hold relevance for our business.
DISCLOSURE CODE
METRIC DESCRIPTION
LOCATION
RESPONSE
Greenhouse gas emissions
FB-MP-110a.1
Gross global Scope 1 emissions
FB-MP-110a.2
Discussion of long- and short-term strategy or plan to manage
Scope 1 emissions, emissions reduction targets, and an analysis of
performance against those targets
Part 02 - Our operational
results, Climate action: Scope
1 & Scope 2 emissions; GHG
reporting standard
See GRI 305-1
Partial overlap with GRI
201-2
Part 02 - Our operational
results, Climate action:
Climate action plan update
Part 03 - Our financial
results, Note 3 Climate
related risk;
TCFD Report
Energy management
FB-MP-130a.1
Food safety
FB-MP-250a.2
FB-MP-250a.3
(1) Total energy consumed, (2) percentage grid electricity and (3)
percentage renewable
Part 02 - Our operational
results, Climate action: Scope
1 & Scope 2 emissions
Partial overlap with GRI
302-1
Percentage of supplier facilities certified to a Global Food Safety
Initiative (GFSI) food safety certification program
Part 02 - Our operational
results, Our certifications
See GRI 416-1
(1) Number of recalls issued and (2) total weight of products recalled Part 02 - Our operational
results, Sales & market:
Our sales & market results
GRI Sector 13.10.5
Workforce health and safety
FB-MP-320a.1
(1) Total recordable incident rate (TRIR) and (2) fatality rate
Part 02 - Our operational
results, People: Fatalities;
Safety indicators 2023; H1-
Factor/LTIR
See GRI 403-9
Animal care and welfare
FB-MP-410a.3
Percentage of production certified to a third-party animal welfare
standard
Part 02 - Our operational
results, Our certifications
GRI Sector 13.11.2
Animal feed & sourcing
FB-MP-440a.1
Percentage of animal feed sourced from regions with High or
Extremely High Baseline Water Stress
Webpage - Zero deforestation
and conversion
FB-MP-440a.3
Discussion of strategy to manage opportunities and risks to feed
sourcing and livestock supply presented by climate change
Activity metric
FB-MP-000.A
Number of processing and manufacturing facilities
FB-MP-000.B
Animal protein production, by category; percentage outsourced
Webpage - Sustainable feed
ingredients; Sustainable
marine ingredients; Zero
deforestation and conversion
Part 02 - Our operational
results, Our certifications
Part 04 - Our integrated
reporting, Reporting scope
and boundary
155
PART 04 - OUR INTEGRATED REPORTING 156
PART 04 - OUR INTEGRATED REPORTING HISTORY AND FUTURE
5000 B.C.E
First fish farms reported in China.
1850
The first wild salmon hatcheries
1969
The brothers Ove and Sivert Grøntvedt
1970s
Commercial salmon farming of chinook,
1973
The Norwegian parliament adopts
1990s
Fish vaccines are introduced. As a
established in Norwegian salmon rivers.
transfer the first salmon smolt to sea
coho and sockeye is established around
a licensing system for the country's
result, the salmon farming industry
pens at the island Hitra in Norway.
Sechelt in British Columbia.
growing aquaculture industry, with the
has significantly reduced its use of
aim of strengthening local communities
antibiotics.
along the coast. Since then, salmon
farms have contributed jobs and
revenues to small, coastal communities.
2007
Grieg Seafood is listed on Oslo Stock
2006
Grieg Seafood merges with the Volden
2001
Grieg Seafood acquires Scandic Marine
Exchange.
Group and establishes Grieg Seafood
Ltd. in British Columbia and establishes
Grieg Seafood acquires Hjaltland Ltd in
Finnmark.
Grieg Seafood BC.
Shetland, the beginning of Grieg Seafood
Shetland.
Grieg Seafood starts implementing RAS
technology in Rogaland.
2000s
The Norwegian government launches
1998
Grieg Seafood Rogaland is established.
the “green license” scheme, with stricter
environmental standards. Grieg Seafood
currently has eight green licenses.
1992
Grieg Seafood Salmon (trading company)
and Bioinvest (salmon farming investor)
are established.
2010
Together with Bremnes Seashore, Grieg
2013
The Norwegian government and the
2020
Grieg Seafood acquires Grieg
2021
Grieg Seafood disposes Grieg Seafood
2023
Grieg Seafood harvest its first salmon
2030
Grieg Seafood aims to have reduced total
Seafood establishes the sales company
industry develop the standard NS9415
Newfoundland in Eastern Canada, and
Shetland to focus operations on the
ever in Newfoundland.
carbon emissions by 35%.
Ocean Quality.
to ensure fish farms are technically
establishes Grieg Seafood Newfoundland.
regions with most growth potential,
safe and prevent the escape of farmed
Grieg Seafood establishes its own sales
Norway and Canada.
salmon.
and market organization, and the Ocean
Quality partnership is dissolved.
Industry
Grieg Seafood
The future
2050
Grieg Seafood aims to have reduced total
carbon emissions by 100%.
157
PART 04 - OUR INTEGRATED REPORTING 2023